With the addition of Santos to the ATP 752P joint venture, Avery’s current Barta and Wompi Blocks farm-in earning program will be expanded from the currently planned three wells to seven wells, and an additional 300 square kilometres of 3D seismic.
The Barta and Wompi Blocks are adjacent to tenements held by Santos that are covered by the Cooper Oil Project.
Santos will take over as operator of ATP 752P and will use Cooper Oil Project rigs to drill the initial two firm farm-in wells (one in each block) beginning before the end of the first quarter of 2008.
VicPet said it believed the experience gained in the upcoming ATP 752P program will help the company in operating a Cooper Oil Project-style program in its South Australian Cooper Basin western margin permits.
Under the staged farm-in arrangements, Bow and VicPet will be fully carried for all the wells and the seismic.
Bow managing director Ron Prefontaine said his company was glad to have brought Santos into the acreage.
“We’re a small company and we’re happy to hand over operatorship in some areas, especially to an operator like Santos, which has 50 years-plus experience in the basin,” he said.
“They have their own rigs, which is a big plus nowadays, and if they don’t find something, we’ll be pretty surprised.”
Bow has said the Hudson prospect in the Barta Block could hold up to 11 million barrels recoverable, while the Nora prospect in the Wompi block could have up to 6MMbbl.
According to Bow, Santos has indicated that it would prefer to drill two wells in each block while the drill rigs are in the area. Drilling of the extra two wells during that period will be conditional on a Santos internal technical review of the current joint venture’s recently acquired 2D, 3D and reprocessed seismic data in the permit.
Under the Avery/Santos ATP 752P farm-in, four oil exploration wells will be drilled and 200sq.km of 3D Seismic will be acquired in the Wompi Block. In addition, three oil exploration wells will be drilled and 100sq.km of 3D seismic will be acquired in the Barta Block.
All stages of the new expanded farm-in program are to be completed before the end of March 2009. The total estimated capital expenditure is about $18.5 million.
The expanded ATP 752P farm-in has necessitated a delay in drilling of Hudson-1, originally scheduled for mid-September, while Santos completes its technical review. The well will now likely be drilled as one of the initial farm-in wells planned to spud early next year.
Bow and Vic Pet will retain post-program interests of 15% each in the two blocks. Santos will have 40% in the Wompi block and 45% in the Barta Block. Avery will have 30% in Wompi and 25% in Barta.
Bow is also planning to farm-out more acreage further north in the Eromanga Basin, Prefontaine said.
“We’re looking for multiwell farm-outs, not necessarily with Santos,” he said.
“We’re looking to farm-out 15-20 more wells, free-carried, elsewhere in the Eromanga.”
