As a result of the $11 million farm-in deal and a gas sales deal worth over $1 billion inked with CS Energy last month, the original four-core well drilling program has increased to 12 core wells and six trial production wells.
The original program only involved proving up to 100PJ of 2P gas reserves for the Richmond Valley power station development. But now Metgasco aims to find an additional 560PJ for the CS Energy joint venture.
Under the farm-in terms, CS Energy will fund the costs of up to 10 of the core wells and all six trial production wells.
Metgasco said the campaign would also involve completing coring and testing on the MMMC-1 well in PEL 13, which would help it earn a 51% working interest in the permit from fellow explorer Molopo.
Two or more drilling rigs will operate continuously over the next six months to complete the work.
