In a statement today, the Perth-based junior said it had signed an agreement with ExxonMobil subsidiary Esso Australia to drill the Marina-1 well, located in offshore Western Australia permit WA-318-P.
The Marina Prospect was identified on seismic surveys undertaken by Drillsearch, after which its technical team followed-up with extensive geoscience work. Drillsearch has said the prospect has potential for 200-250 million barrels of oil.
Drillsearch said it had contracted the Premium Wilcraft jack-up rig to drill the well in mid-September. Currently, the rig is undertaking a drilling campaign for a Roc Oil-led joint venture in the northern Perth basin, and after that it will drill Hurricane-2 for a Santos-led consortium.
Under the farm-in, Exxon has agreed to pay 85% of the costs to drill Marina-1 in exchange for a 65% working interest in the permit. At that point, Exxon will become operator of the permit.
Drillsearch will contribute 15% of the well costs and retain a 35% interest.
In addition, Exxon and Drillsearch will cooperate in regional geoscience studies.
Drillsearch has title to three permits in the southern Bonaparte Gulf, including 100% of the Turtle and Barnett oil discoveries in retention leases WA13R and NT/RL3, respectively.
Kelso says the company saw the Bonaparte region as a major opportunity when it bought into Turtle/Barnett in 2004.
These fields lie about 40km offshore in shallow water and are estimated to contain 70-90MMbbl in several zones. The company has also identified significant updip potential at Turtle of around 40MMbbl.
Drillsearch managing director Philip Kelso said the farm-out to Exxon was the first major milestone for its Bonaparte Gulf projects.
"ExxonMobil’s involvement is a vote of confidence in the geoscientific work undertaken by our technical team in the Bonaparte Gulf and on this prospect,” Kelso said.
Also on the cards for further exploration is a strong lead in WA-318-P to the northeast of Marina called Balzac.
Drillsearch plans to run 100sq.km of 3D seismic to firm up a drilling location.
Kelso said he believed Marina-1 would be one of the key wells drilled in Australia this year.
“Success with Marina-1 will catapult Drillsearch into the middle rank of Australian petroleum companies.”
