Drillsearch Energy has signed a farm-in agreement with Beach Energy to explore the ATP 924P oil and gas exploration permit within the Cooper Basin’s south-west Queensland section.
Under the deal, Beach Energy will earn a 45% stake in ATP 924P, while Drillsearch will own the remaining 55% interest.
Drillsearch Energy said: "This agreement follows an extensive farmout process conducted by Drillsearch to identify an aligned joint venture partner for the permit."
Drillsearch managing director Brad Lingo said: "We are delighted with the outcome of the ATP 924P farmout process which has delivered a high quality partner in Beach and we look forward to working together to expedite the work programme we already have underway.
"The Inland-Cook/ATP 924P area is an important part of the long-term strategy for our Oil Business and we look forward to reporting back on the results of the work programme."
Beach Energy will finance the 150km² of recently acquired 3D seismic and drill an initial exploration well on the Hurron prospect.
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By GlobalDataIn addition, the company will drill another exploration well and compensate Drillsearch for previous costs. It will also carry out the drilling of up to two wells on behalf of Drillsearch.
The first well would target potential oil reservoirs in the Eromanga Basin sediments at the Hurron prospect, which is estimated to host resources of between 6.4 mmbbls (Low estimate P90) and 48.1 mmbbls (High estimate P10) with an estimate (P50) of 18.7 mmbbls.
Drillsearch also identified a deeper Hurron wet gas prospect with resource potential of between 12.3bcf (low estimate P90) and 52.4bcf (high estimate P10) with a best estimate (P50) of 27.9bcf.
Covering an area of around 2,300km², the ATP 924P is located between the Inland Oil Field to the north, and the Cook/Cuisinier Oil Fields to the south.
Three wells have been drilled in the permit to date with six prospects currently planned as potential targets for future exploration.
Drillsearch and Beach Energy already produce oil from the prolific PEL 91 joint venture and wet gas from PEL 106 at the Western Flank Oil Fairway of the Cooper Basin.
