Global’s imminent Sasanof-1 oil and gas exploration well has drawn UK-listed Clontarf Energy to acquire a 10% interest in the well from the operator.
Clontarf will fund 20% of the drilling cost of Sasanof-1, which is poised to spud in late May and targets prospective resources of 7.2 trillion cubic feet of gas and 176 million barrels (MMbbl) of condensate, to acquire its stake from Western Gas.
This consists of a US$4m ($5.76m) cash payment and an issue of shares to Western Gas with provisions to provide 20% of a further US$5m in expenditure on the well and a further share of shares in the event of a discovery.
Global Oil & Gas (ASX:GLV) noted that the acquisition reflects the international interest in the highly anticipated well in Western Australia’s prolific North West Shelf region.
The Valaris MS-1 semi-submersible drill rig is due to arrive on site within days for drilling to begin on May 24.
Sasonof Prospect
The Sasonof prospect covers 400sqkm and is on trend and updip of Western Gas’ liquids-rich and low carbon dioxide Mentorc field.
It is a large, seismic amplitude supported, structural-stratigraphic trap in the high-quality reservoir sands.
These sands are located at the top of the Cretaceous top Lower Barrow Group formation on the Barrow Delta within the Exmouth Plateau
Sasanof-1 has a 32% geological chance of success and will be Western Gas’ first well drilled from its extensive exploration portfolio surrounding the existing Equus gas project that contains a discovered resource of 2Tcf of gas and 42MMbbl of liquids.
Equus has a historical exploration drilling success rate of 88% with 15 discoveries from 17 wells.
Global is paying US$10m for its 25% stake in the well.
This article was developed in collaboration with Global Oil & Gas, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.