Under the terms of the farm-in agreement Victoria Petroleum will have a significant 30% free carried interest through the drilling of North Giligulgul-1.
The North Giligulgul Prospect in ATP 574P has the potential to contain recoverable reserves of up to 16 million barrels of oil, if oil is present.
OEX secured the farm-in after OME Resources failed to fulfill its commitments in the permit by commencing the drilling of a well by the end of October 2003.
Victoria Petroleum, the operator of these Surat Basin permits, offered Oilex the right to farm-in to ATP 574P on the same terms as provided for in the original OME farm-in agreement.
OEX will operate the well and is currently finalising a drilling contract, which should see the North Giligulgul-1 well commence drilling by the end of January 2004.
"Victoria Petroleum looks forward to the commencement of the drilling of the highly prospective North Giligulgul-1, testing down dip live oil shows in a 1964 well drilled by Union Oil," said Victoria Petroleum managing director John Kopcheff.
"Victoria Petroleum N.L has long considered the North Giligulgul Prospect to have significant oil bearing potential in its Surat Basin portfolio of properties."
