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YouTubeIn September Metgasco entered into a binding farm-in agreement for a 60% operational interest in L14 with Jade Energy Holdings.
Energy News Bulletin | 7 October 2019
Metgasco’s new asset gets a resource upgrade
ASX-listed junior Metgasco has reported an increase in prospective resources across the Cervantes prospect within the L14 permit in the North Perth Basin it recently farmed into.
On Friday, the joint venture announced a substantial increase in prospective resources across the permit, with independent consultancy RISC estimating a 14% jump on previous estimates.According to RISC the Cervantes prospect within the permit holds a gross P50 prospective resource of 17.4 million barrels of oil.
Metgasco can expect 10.4MMbbls should the prospect prove successful.According to Metgasco, the joint venture plan to spud the first well in the Western Flank of the permit in April next year.This will be followed by a second exploration well, though the location is yet to be announced.”I believe RISC’s independent assessment confirms the significant prospectivity of the Cervantes oil prospect and has received strong interest from potential farm-in partners since opening the data room last month,” Metgasco chief Ken Aitken said.The company can secure additional farm-in partners for up 30% interest, with a third farminee reducing Metgasco’s commitment cost but also its equity interest.
Metgasco is now suggesting a possible exploration well could be drilled through four different geological formations in the Cattamara sandstone, Dongara, and the Kingia and High Cliff sandstones that have yielded so much for both the Beach-Mitsui joint venture at the Waitsia field and most recently the Strike Energy and Warrego Energy joint venture at their West Erregulla-2 conventional gas well.
The Joint venture has already carried out an extensive geological and engineering review of seismic data and wells, and a review of publically available exploration and production data from neighbouring blocks has been done. Metgasco shares were worth 4.5 cents per share. The company has a market cap of $17.5 million.