Melbourne-based Molopo announced today it would earn a 25% interest in Oil Company of Australia Limited's (OCA) Prospect 602P in the Bowen Basin.
"We believe that ATP602P represents an excellent appraisal project that should boost the company's reserves during the current year," Molopo's managing director, Mr Stephen Mitchell said.
"The permit contains the 84-square kilometre Timmy Prospect which has the potential for in excess of 230 petajoules of commercial volumes of gas," Mr Mitchell said.
"Previous production tests carried out by Conoco in 1996, in the Isla-1 well, demonstrated a stable gas flow rate of just over 100,000 cubic feet per day before increasing to around 150,000 cubic feet per day prior to being shut in.
"Based on this result, along with the improved stimulation techniques being employed in the Basin, the farm-in agreement should enhance Molopo's reserves."
The ATP602P prospect adjoins OCA's existing production lease (PL94) where OCA has already established a commercial coalbed methane (CBM) operation and where Molopo is currently earning a 25% interest in the Mungi Prospect.
Under the terms of the agreement, Molopo's $400,000 commitment to the ATP602P farm-in will be funded by Helm Energy-Australia LLC (Helm) from the $6.5 million that Helm is contributing towards Molopo's work commitments in ATP564P and PL94
Helm is also earning a net 25% interest in ATP602P by spending $400,000 on a production test program with Molopo. Drilling is expected to commence within two weeks. OCA will retain a 50% interest in the permit and remain as operator.
Molopo is currently completing production testing on its Mungi and Harcourt fields where it has an entitlement to proven and probable (2P) reserves of 85 billion cubic feet.
