Under the transaction, Apache takes a 40% operating interest in the WA-435-P and WA-437-P permits, with JX Nippon and existing partners Carnarvon Petroleum and Finder Exploration both holding 20%.
Drilling of two wells could start late in 2013, using the Atwood Eagle drilling rig, with the farminees covering the costs of the first well on the multi-tcf lower Triassic Phoenix South gas prospect. This will be drilled to a minimum depth of 4,500 m (14,764 ft).
Depending on the results, they will also finance a well on the Roc prospect, subject to an agreed limit. This well will target gas at the same level, with a planned minimum drilling depth of 4,000 m (13,123 ft).
Both structures could also contain large associated volumes of liquids. The location in each case is close to the Phoenix-1 gas discovery.