Empire told the ASX yesterday that Allied Oil & Gas will spend a total of $A2.15 million on drilling and seismic surveys to earn a 25% interest in each of EP 426, 432 and 416.

Meanwhile, Wharf Resources will earn a 25% interest in EP 389 by contributing $700,000 towards the 45 square kilometre Gingin West 3D seismic survey. The company, which plans to list on the OFEX in the UK, has the option to earn an additional 35% by spending $4 million to drill an exploration well in the permit.

The 3D seismic survey is designed to further define the Gingin West Structure up-dip from the Bootine-1 well that flowed 2.25 million cubic feet of gas per day from one sand.

Estimated potential recoverable gas reserves are calculated at up to 212 billion cubic feet if gas is charged and full to its spill point. Gas from the nearby Gingin-1, Gingin-2 and Bootine wells has 11 barrels of condensate per million cubic feet, Empire said.

In EP 426, Allied, which plans to list on London’s AIM, has agreed to pay $750,000 towards drilling the Moriary-1 exploration well for a quarter interest in the permit.

Last month, Empire farmed-out a 25% interest in this permit to private petroleum firm Northern Territory Oil.

The Moriary prospect is an anti-clinal structure similar to the Mount Horner oil field, with potential recoverable oil reserves totalling 11Mbbls, according to Empire. This includes 3Mbbls at the ‘F’ Sand objective, 4Mbbls at the ‘J’ and 4Mbbls at the ‘L’ Sand objectives in the Jurassic Cattamarra Coal Measures.

Allied will also pay $900,000 towards funding the 60sq.km Mullering 3D seismic survey in EP 432. It has the option to earn a further 25% by paying $1.5 million towards drilling one well on the Mullering Anticline to a depth of 2000m.

The company will also earn a 20% working interest in EP 416 by paying for the $500,000 Wellesley 3D seismic survey, with the option to earn another 60% by paying $5 million to drill one well.