Subject to other JV partners not exercising pre-emptive rights to match the offer, Entek will earn a 40% interest in the Glenvale Block by contributing to the cost of drilling the Coolum-1 well.
Coolum-1 will target 1.1 million barrels of recoverable oil reserves updip of the Glenvale-1 well, which currently produces five barrels of oil per day on free flow from the Westbourne formation.
Glenvale-1 is excluded from the remainder of the Glenvale Block. Other structures in the lease are also excluded. But Entek will be granted the option of farming into other structures in ATP 269P on the same terms following the drilling of Coolum-1.
Coolum-1 will be drilled on an updip from Glenvale-1 that has been newly identified using a new velocity model derived from analysing well data in the area. If the new depth conversion technique is verified at Coolum-1 it is likely to also work on other structures in ATP 269P.
Coolum-1 is located about six kilometres from the producing Kenmore oil field. It will target the Westbourne formation, the Birkhead formation and the Hutton Sandstone updip of Glenvale-1.
The operator, Beach Petroleum, plans to start drilling in January. Following the farmin, interests will be: Beach 33.05%, Mawson Petroleum (a Beach subsidiary) 13.9%, Inland Oil 6.1%, Entek 40% and Gidgealpa Oil 6.95%.
