MELBOURNE, Australia – Cue Energy Resources Ltd. says Australia’s National Offshore Petroleum Titles Administrator has approved the transfer of 80% equity and operatorship of the WA-409-P permit offshore Western Australia to BP.
BP has agreed to fund 100% of the work program for the permit for the next three years, and has an option through to May 2017 to also acquire 42.5% of WA-359-P from Cue.
In this case, 50% of the cost of drilling a well on the permit would be funded. Cue is now seeking further partners to co-fund drilling in 2018 to test the Ironbark prospect.
Cue undertook a regional study using 15,000 sq km (5,791 sq mi) of 3D and 2D seismic data and 17 well ties to map the same Triassic intra-Mungaroo sands encountered at the Gorgon gas field.
This led to identification of Ironbark, which straddles WA-359-P and WA-409-P in moderate water depths, covering an area of up to 400 sq km (154 sq mi) with a best technical estimate of 15 tcf of prospective recoverable gas.
Analyst Wood Mackenzie estimates that the North West Shelf LNG plant and infrastructure will have spare capacity from 2021.
Ironbark is less than 50 km (31 mi) from the associated North Rankin and close to the Pluto and Wheatstone LNG infrastructure, providing cost-effective commercialization options, Cue claims.