Under the deal, the PEL 115 joint venture will pay 100% of the cost to drill the Tomcat-1 well in the Wilpinnie North Block of PPL-93.

VicPet said if Tomcat-1 is found to be a commercial oil producer, the PEL 115 JV would earn a 50% interest in the project.

“Victoria Petroleum considers Tomcat-1 to have a good chance of success of encountering oil in the target formation,” managing director John Kopcheff said.

“Drilling results from Tomcat-1 and the testing of that well will determine to a large extent how much of the Tomcat oil pool may extend into PEL 115.”

After drilling of Tomcat-1, the PPL-93 JV will have an option to farm-in and earn a 50% interest in that portion of the Tomcat prospect mapped as present in PEL 115.

VicPet said the prospect covers an area of 1.8 square kilometres, with 63% of the prospect in the northern portion of PEL 115 and 37% in the adjoining PPL-93.

It is interpreted from seismic data to have the potential to contain recoverable oil in the range of 3.5 million barrels (mean) to 5.6MMbbl (P10), if oil is present, it said.

Tomcat-1 will be drilled 20m to the north and updip of the Wilpinnie-3 well, which lies in the northern part of PPL-93 and was drilled in 1993. It is planned to be drilled to a total depth of 1850m, VicPet said.

PPL-93 JV operator Santos is expected to drill Tomcat-1, between the major Dullingan oil field the Della oil and gas field, in late December.

If oil is produced from Tomcat-1, the after farm-out interests in it and the Wilpinnie North Block of PPL-93 would be operator Santos (33.3%), Origin Energy (6.595%), Delhi Petroleum (10.105%), VicPet NL (20%), Impress Energy (20%) and Roma Petroleum (10%).

If there is no oil production, the PEL 115 JV will earn no interest in either Tomcat-1 or the Wilpinnie North Block.