Metgasco is about to drill a highly prospective Perth Basin oil exploration well
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Metgasco is just days out from drilling the hugely-anticipated Cervantes exploration well in the Perth Basin – thought to hold approximately 15 million barrels of oil (MBOE).
The Ensign 970 rig is being mobilised to the well location and drilling is expected to begin on or around 25 March, following the completion of civil works and drill pad preparation.
Cervantes-1 is located on a high-side fault trap similar to, and on trend, with existing oil fields such as Cliff Head, Jingemia and Hovea.
It targets Permian sandstone reservoir targets which have been prolific producers in the Perth Basin.
With oil prices continuing to trade around the US$100 per barrel mark, an already lucrative prospect for Metgasco (ASX:MEL) and its partners, could become a company game changer , with the company’s share (4.6MMbbl) worth substantially more than its current market cap of about $28m.
The company is funding 50% of Cervantes-1 to earn a 30% stake in the L14 Cervantes Joint Venture.
Metgasco’s management team has been seconded as project managers to L14’s operator RCMA.
This article was developed in collaboration with Metgasco, 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.