“Construction of the tie-in pipeline is expected to commence shortly and be completed by the end of the year,” Smegsy operator Great Artesian Oil & Gas said this morning.
“Once completed, revenue from first gas sales will quickly follow, the joint venture having in September signed a gas sales agreement with the SACBP.”
Under the well tie in and services agreement, the SACBP will also provide ongoing maintenance of the tie-in pipeline, but construction will be fully funded by the Smegsy Block Joint Venture.
Once the tie-in pipeline is completed an initial phase of extended production from Smegsy-1 will allow determination of optimal flow rates, following which the joint venture will be in a position to forecast future revenue earnings, Great Artesian said.
Interests in the Smegsy Block Joint Venture are Great Artesian Oil and Gas Limited (75%) and Enterprise Energy NL (25)%.
Participants in the SACBP are: Santos Limited (operator), Santos Petroleum Pty Ltd, Bridge Oil Developments Pty Ltd, Santos (BOL) Pty Ltd, Vamgas Pty Ltd, Alliance Petroleum Australia Pty Ltd, Reef Oil Pty Ltd, Delhi Petroleum Pty Ltd, Origin Energy Resources Ltd, Novus Australia Resources NL and Basin Oil Pty Ltd.
