The Perth Basin farmouts will partly fund drilling the Moriary prospect and acquiring significant amounts of onshore 3D seismic, Empire said.

Wharf has signed an agreement to pay $735,000 for a 25% stake in EP-426, Empire said. These funds will partly cover the costs for drilling the Moriary-1 exploration well in the permit, Empire said.

This EP 426 farm-in agreement is subject to Wharf completing its due diligence and paying the settlement by mid-March.

The Moriary prospect is an anticlinal structure similar to the Mount Horner Oilfield, with potential recoverable oil reserves totaling 11 million barrels, according to Empire. This includes 3 million barrels at the “F” Sand objective, 4 million barrels at the “J,” and 4 million barrels at the “L” Sand objectives in the Jurassic Cattamarra Coal Measures.

In the EP-432 farmin agreement, Wharf will pay Empire $900,000 by April 7 to earn a 25% interest in the permit. This would pay for acquiring the 60 sq.km Mullering 3D Seismic Survey, Empire said.

Wharf would then have the option to earn an additional 25% interest in the EP-432 Permit by paying Empire a further $1.5 million. These funds would then cover most costs of drilling one exploration well to a total depth of at least 2,000 metres.

EP-432 contains the complexly faulted Mullering Anticline, in which the Cataby-1 well drill stem tested about 25-30 barrels oil per day from a thin sand in the Cattamarra Coal Measures.

The 3D seismic survey is designed to resolve the crestal faulting and to mature the fault block leads to drillable status, Empire said.

Potential recoverable oil reserves are estimated to be 5-10 million barrels per lead.

Meanwhile, Wharf has also agreed to pay Empire $700,000 by May 15 to earn a 25% interest in the EP-389 Permit.

This will fund the 45 sq.km Gingin West 3D Seismic Survey. Wharf will then have the option to earn an additional 35% interest by paying Empire a further

$4 million to fund the cost of drilling one well to a total depth of at least 3750 metres.

EP-389 contains the Gingin West Prospect updip from the Bootine-1 well, which drill stem tested 2.25 million cubic feet of gas per day from the Jurassic Cattamarra Coal Measures.

The 3D seismic survey is aimed to resolve minor faulting and improve the resolution of seismic events within the Cattamarra Coal Measures.

The structure is estimated to contain potential recoverable reserves of 200 billion cubic feet.

Meanwhile, the company’s wholly-owned subsidiary Gulliver Productions and its other joint venture partners will farm-out an 18.75% interest in EP-104 and RL1 to Emerald Gas Ltd. In return, Emerald will pay 25% of the Stokes Bay-1 well drilling costs.

This agreement is subject to Emerald listing on the ASX or merging with a listed company by March this year.

In addition, Emerald have the option to earn an 18.75% interest in production licence application L98-1 in the West Kora Oilfield by contributing 25% of workover costs to re-start oil production from the West Kora-1 oil well.

Retention Lease R1 comprises 3 blocks and contains the Point Torment-1 gas discovery with potential reserves of 80 billion cubic feet of gas and 10 million barrels of oil.

In 1992, Point Torment-1 tested 4.3 million cubic feet of gas, but no significant gas market meant follow-up appraisal drilling was not undertaken, Empire said.

The joint venture is seeking to sell potential gas reserves to the growing West Kimberley power market, it said.

Stokes Bay-1 is designed to prove the lateral extent of the gas bearing sands in the Point Torment-1 well.

R1 and L98-1 also contain the seismically defined Valentine Prospect with potential recoverable reserves of 200 million barrels of oil or 1.2 trillion cubic feet of gas.

The joint venture plans to farmout drilling the Valentine Prospect.

Covering 250 sq.km, L98-1 comprises two blocks and also contains the West Kora-1 Oil field.

EP-104 consists of 9 blocks covering 740 sq.km and contains a number of Devonian-aged reefal prospects plus the Carboni ferous-aged Saddleback stratigraphic trap.

The post Emerald farm-in equities in EP 104 and R1 will be: Empire Oil & Gas subsidiary, Gulliver Productions Pty Ltd (40.02%); Emerald Gas Limited (18.75%); Indigo Oil Pty Ltd (12.89%); Pancontinental Oil & Gas N.L. (11%); First Austral ian Resources Limited (8%); Kimberley Oil N.L. (5.93%); and Pelsoil Limited 3.41%