Cerberus Farmin Agreement, Carnarvon Basin, Western Australia

Source: www.gulfoilandgas.com 10/15/2021, Location: Not categorized

Bounty Oil and Gas NL will acquire a 25% Strategic Interest in 4 Drill Ready Shallow Water Carnarvon Basin Oil Exploration Licences in Western Australia.

1. Highlights
- Bounty Group has entered into a binding farmin agreement with Coastal Oil and Gas Pty Ltd (“Coastal”) to acquire a 25% interest in Carnarvon Basin oil exploration licenses EP 475, EP 490, EP 491 and TP 27 (collectively “Cerberus”) by funding AUD $6 million towards the costs of drilling three (3) exploration wells (“Drilling Program”).
- Under the farmin Bounty Group will have options during the next six (6) months to earn two 25% tranches for additional participating interests by funding $9 million and $12 million respectively towards the Drilling Program.
- Bounty Group and Coastal will jointly operate the Drilling Program.
- The primary prospects identified for drilling are Triassic stratigraphic plays that are direct lookalikes to the Santos Limited operated Dorado, Phoenix South and Roc discoveries.
- Bounty’s focus has been on the Stork, Honeybadger, Parrot and Gallant prospects with Unrisked Prospective Resources1 as follows:
- An Expression of Interest has been issued to the rig market to assess the timing and cost of the Drilling Program, estimated to be between US $20 - 30 million for the 3 wells.
- Mr Kane Marshall joins Bounty as Chief Operating Officer working alongside Coastal members including oil industry veteran Ted Jacobson.
- The Company has received firm commitments from qualified institutional and sophisticated investors, raising $2.74 million before issue expenses which was heavily oversubscribed. Members of Management from each of Coastal and Bounty participated in the placement and Bounty also welcomes new institutional investors to its register.

Bounty Oil and Gas NL (“Bounty” or the “the Company” (ASX: BUY)) is pleased to announce that it has signed a binding Farmin Agreement to earn a 25% interest in four permits owned 100% by Coastal Oil and Gas Pty Ltd (“Coastal”) in shallow waters of the Carnarvon Basin, Western Australia. The permits EP 475, EP 490, EP 491 and TP 27 (“Cerberus”) lie south of the Jadestone Energy Plc operated Stag Oil Field, north-east of the Chevron Australia Pty Ltd operated Barrow Island Oilfields and east of Santos Limited operated Oil and Gas Fields on Thevanard Island.

The Farmin Agreement binds Bounty Group to fund $6 million, subject to certain milestones, towards the cost of drilling three (3) exploration wells (“Drilling Program”) in return for a 25% unencumbered participating interest in Cerberus.

Bounty Group has options during the next six (6) months to earn two additional unencumbered in 25% tranches by funding $9 million and $12 million respectively towards the Drilling Program.Bounty and Coastal will co-operate on exercise of these options and any additional entrants to the Drilling Program.

Bounty and Coastal will jointly operate the Drilling Program. The decisions on the three prospects to be drilled will be decided by a team that will include the new Chief Operating Officer of Bounty Mr Kane Marshall; Ted Jacobson Founder of both Discovery Petroleum and Tap Oil as well as a former Director of both Tap Oil and Carnarvon Petroleum plus, Joseph Graham of Skye Energy Ventures Pty Ltd and Explorationist Dariusz Jablonski.

Kane Marshall is a petroleum reservoir engineer/geologist and was until 2019 Managing Director of Key Petroleum Limited and a Non-Executive Director of Hawkley Oil and Gas Limited.

The Cerberus prospects are located in shallow water (25 to 50 metres) and lie directly adjacent to the most prolific hydrocarbon production areas of the Carnarvon Basin operated by majors and independent energy companies. Prospects are mapped at four different geological age levels, being the Lower Cretaceous, Lower-Middle Jis urassic, Lower-Middle Triassic and Permian. The recently discovered Dorado Oil Field, being developed by Carnarvon and Santos Limited is a large Lower-Middle Triassic shallow marine and basin fan accumulation that has significantly upgraded the Cerberus prospectivity. Three of Bounty’s preferred Triassic prospects for the Drilling Program are the large Dorado lookalikes Stork, Parrot and Honeybadger which are already identified on 2D and 3D seismic and target Gross Mean Unrisked Prospective Resources of 627 million barrels.

Currently producing Cretaceous Oil Fields to the north include both Stag (85 million barrels) and Wandoo (100 million barrels). Operators of both fields have active Programs in 2022 and Bounty and Coastal are assessing the possibility of utilising a jackup from one of these campaigns to minimise mobilisation costs for the Drilling Program. The Gallant prospect, a prospect mapped at the same Cretaceous level as Stag and Wandoo is favoured for drilling by both Coastal and Bounty with a Gross Unrisked Mean Prospective Resource of 44 million barrels.

Coastal intends to engage Petrofac as the Well Project Manager for the Drilling Program and an Expression of Interest has already been submitted to the rig market to assess jackup rig suitability, timing and costs which are expected to be in the vicinity of $ USD 20-30 million and take no longer than 40 days to complete the entire campaign.

Bounty Oil and Gas CEO, Philip Kelso commented:
"This farmin to the Cerberus Project West Australia will see Bounty shareholders participating in 3 relatively low risk very high impact oil exploration wells in 2022/23 as oil prices strengthen in the face of disinvestment by majors and in a very low sovereign risk State.

Bounty will be one of the only juniors in Australia with significant exposure to existing Australian oil production and hydrocarbon provinces with proximity to markets in the east (PEP 11,Sydney Basin gas) and the west coast (Cerberus Carnarvon Basin). Cerberus is an exciting play with some of the largest seismically defined drillable offshore oil prospects in Australia and proximity to production and transport infrastructure. Honeybadger and Stork are examples of prospects with the potential for hundreds of millions of barrels of oil to be found. With Brent oil prices currently trading above $80 Bounty has entered an excellent venture with Kane Marshall who has joined the Bounty team and working alongside proven industry performers in the Coastal team comprising Ted Jacobson, Joe Graham and Dariusz Jablonski.”

2. Cerberus Prospect and Permit Summary
- The permits cover a very large area of 3,200 km2 and are considered to be oil prone and include EP 475, EP 490, EP 491 and TP 27 which all lie in Western Australian State waters governed by the WA Department of Mines, Industry, Resources and Safety (“DMIRS”)
- All permits are in good standing with DMIRS with well commitments due in 2023 and the drilling of three wells will satisfy these commitments for all four permits
- The water depths are between 25 and 50 metres suitable for Jackup rigs which are active in Western Australia through 2022 and 2023
- Lower Triassic prospects Parrot, Honeybadger and Stork are between drill depths of 1,300 to 1,700 metres
- Cretaceous pinchout plays are shallower in depth of 600 metres similar to the Stag and Wandoo Oil Fields
- A few previous exploration wells in Cerberus have penetrated into the Trassic geological sequence representing a unique opportunity with close proximity to infrastructure and markets
- The areas have been earmarked for future geosequestration for CO2 storage Lower Trassic prospects in Cerberus are directly analogous to hydrocarbon accumulations in the Bedout Sub-basin, the subject of the Roc, Phoenix South and Dorado discoveries
- Direct Hydrocarbon Indicators and gas chimneys, indicative of an active petroleum system have been identified on Cerberus seismic with similar characteristics identified in the Bedout Sub-basin

Prospective Resources for Cerberus have been assessed for the Cretaceous, Triassic and Permian levels only. Coastal and Bounty are currently assessing other leads and prospects at these levels as well as at the Jurassic level where the Legendre, Murat and Athol Fields in the Carnarvon Basin have produced from the same geological intervals that are present in Cerberus. Further work is required at the deepest Permian level where recent success in the Perth Basin with the Lockyer Deep-1 and West Erregulla-2 discoveries have upgraded the resource potential of the basin. Coastal and Bounty will be undertaking seismic reprocessing to better define well locations for the Drilling Program as well as understand the deeper potential.

France >>  12/1/2021 - BW Ideol has signed an agreement to acquire a 5% ownership in the 30MW EOLMED floating wind pilot project in the French Mediterranean. This investment...
Nigeria >>  12/1/2021 - ADM Energy PLC, a natural resources investing company, notes that Panoro Energy ASA ("Panoro") an independent exploration and production company, and ...

United States >>  12/1/2021 - Eni joins forces with CFS to accelerate the commercialisation of magnetic confinement fusion energy through the construction of SPARC, a net fusion en...
United States >>  12/1/2021 - ConocoPhillips (COP) announced that it has completed its acquisition of Shell Enterprises LLC’s prolific Delaware basin position for $9.5 billion in c...

Canada >>  11/30/2021 - Cenovus Energy Inc. has reached agreements to sell its Husky retail fuels network and the Wembley assets in its Conventional business for combined tot...
Nigeria >>  11/30/2021 - Panoro Energy ASA and PetroNor E&P Limited have agreed to extend the completion long stop date for the previously announced sale of its fully-owned su...

Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.