Sapura Energy Bhd, through the wholly-owned subsidiary Sapura Upstream Sdn Bhd, has signed three farm-in agreements for offshore exploration permits held by Perth-based oil and gas company, Finder Exploration Pty Ltd.
All three exploration permits are located within the North West Shelf oil and gas province, offshore of Western Australia. Sapura Energy have deemed these areas to be ‘highly prolific’. Under the agreements, Sapura Upstream will acquire a 70 per cent interest in the three permits and will assume operatorship of exploration activities. Finder Exploration will retain the remaining 30 per cent interest in the permits.
“Following the signing of the agreements today and subject to securing the requisite regulatory approvals, Sapura Upstream will acquire interests in blocks EP 483 & TP/25, WA-412-P, and AC/P 61,” a spokesperson from Sapura Energy said.
The EP 483 and TP/25 permit is located in shallow water at the southern margins of the Carnarvon Basin, while the WA-412-P permit is located in the northern region of the Carnarvon Basin and is adjacent to several large oil and gas fields. The AC/P 61 permit is positioned in the Vulcan Sub-basin, where it is also surrounded by oil and gas discoveries. Through the farm-in Joint Venture, the two companies plan to drill two exploration wells in the Carnarvon Basin permits between 2019 and 2020 and plan to acquire seismic data in AC/P 61 in 2019.
Sapura Energy believes both Carnarvon Basin permits contain high quality, drill-ready prospects which offer ‘significant upside potential’. It is important to note that completion of the farm-in agreements is subject to the parties securing the required regulatory approvals.
Sapura Energy president and group chief executive officer Tan Sri Shahril Shamsuddin said the entry into Australia marks another significant milestone for the business.
“We continue to pursue growth in line with our strategy to expand our portfolio and acreage position,” he said.
More information on this agreement can be found here.