According to Arc, the two companies have signed a farm-in agreement regarding Origin’s 100%-held T/44P permit in the Bass Basin.
Under the terms, Arc will earn a 40% interest in the permit, by reimbursing Origin’s back costs.
Arc managing director Eric Streitberg said the farm-in would help consolidate his company’s position in the Bass Basin following its acquisition of a 12.5% stake in the BassGas project, including permits T/18P and TL/1, in April.
“This farm-in fits very well with our philosophy of holding large equities in prospective areas where we have access to or control of existing infrastructure,” he said.
“Our evaluation of T/18P and T/44P suggests there is scope for substantial additional gas and potentially oil reserves in this under-explored area.”
Arc said it considered T/44P to have similar prospectivity to the adjacent T/18P permit, which contains the White Ibis and Trefoil discoveries, and TL/1, which contains the producing Yolla gas and condensate field.
The T/44P work program involves the acquisition of 2D and 3D seismic data, currently scheduled for early next year, and then drilling an exploration well.
As part of the farm-in, Arc has an option to acquire an additional 10% interest in T/44P by paying 20% of the costs to drill the well and further back costs.
