Roc farms into Vlaming sub-basin
Offshore staff
SYDNEY, Australia -- Roc Oil Co. Ltd. subsidiary Roc Oil (WA) Pty. Ltd. has executed a farm-in agreement with Lempika Pty. Ltd., Emphazise Pty. Ltd., and Westralian Petroleum Ltd. for exploration permits WA-381-P and WA-382-P in the Vlaming sub-basin offshore Perth, Western Australia.
Subject to government approval, Roc has acquired an initial 20% interest in the permits and has been granted a further two options that can be exercised by funding a staged work program.
Roc has agreed to acquire a 20% interest in the permits and to be appointed operator by funding 100% of $1.6 million pre-seismic exploration activity.
The second-stage option to acquire an additional 20% interest in the permits requires Roc to fund a $4.1 million, 2D/3D seismic program. Subject to the availability of seismic vessels, Roc intends to move as quickly as possible to acquire seismic data to allow the JV to consider the details of its 2008-2009 drilling strategy, Roc says.
If Roc elects to exercise the final option, the company will be required to pay 100% of an exploration well cost in one and/or both permits up to a ceiling of $12.3 million per well, for an additional 40% interest in the permit in which the well is located.
If Roc exercises all of the options detailed in the agreement, it will acquire 80% interest in the permits in consideration for funding a $30.4-million work program.
The permits are 35 km (22 mi) west of Perth in commonwealth waters and cover 4,540 sq km (1,753 sq mi) in water depths ranging from 15 m to 1,500 m (49-4,921 ft).
The key attractions of the area include access to both gas and oil infrastructure in the Kwinana-Perth area and several oil and gas plays that appear to have the characteristics necessary to generate and trap oil and/or gas accumulations. Seismic data acquired between 1975 and 2004 indicate the presence of a number of structural leads and prospects which will be covered by the proposed 2D/3D seismic data, Roc says. Wells drilled to date indicate good quality reservoirs to a depth of approximately 3,000 m (9,842.5 ft).
"The Vlaming sub-basin sits slap bang in the middle of Roc's core competency," says John Doran, Roc CEO. "As operator, the company led the joint venture that discovered and developed the Cliff Head oil field in the environmentally sensitive Perth basin, some 350 km (217.5 mi) to the north. One of the hallmarks of the Cliff Head development was Roc's close liaison with the local community, particularly the crayfishing industry, to ensure that the environmental footprint is minimal and that the company's activities recognize and respect all interested parties. Quite bluntly, our Cliff Head experience provides a really good case history as to how well industry-community liaisons can work if all the relevant parties are directly involved from the outset.
"Roc has been reviewing the prospectivity of the permits since early 2006, and therefore, it is particularly pleasing to be able to structure a mutually beneficial arrangement with the farmors without Roc committing to a well until more information is available."
9/6/2007