PERTH: Oilex Ltd has entered into a binding term sheet with Senex Energy Limited and certain of its related entities to acquire all of Senex’s interest as operator in 27 Petroleum Retention Licenses in the Northern Oil and West Gas Fairway in the world class Cooper-Eromanga Basins in South Australia subject to satisfaction of conditions.
Oilex has been actively reviewing the basin for more than two years. The Cooper-Eromanga basin is recognised as a global super-basin and as number one for above ground development by IHS Market.
The basin has a high exploration success rate, low cost development pathways, and remains under-explored and under-developed. The introduction of proven technologies is expanding known play fairways. The Company sees this transaction as a major step forward; it provides a material position in an established play fairway.
Oilex’s access to advanced IP will form a major part of future activity throughout this area. The basin is well endowed with infrastructure providing for attractive low-cost discovery and development for Oilex. Equally, robust gas pricing in Eastern Australia provides a great basis for commercialization of any discoveries.
Senex has agreed to transfer 100% of its interest in the permits. The Petroleum Retention Licenses (PRLs) are part of the 15-year tenure retention agreement between the South Australian Government and Senex announced in August 2013.
Historically, technical data available from the South Australian Department for Energy & Mining reflects that the Northern Fairway PRLs contain a portfolio of shallow Jurassic oil and deeper Triassic and Permian oil and wet gas leads and prospects as well an undeveloped tight gas discovery. The Company considers the Northern Fairway PRLs as highly prospective for both structural and stratigraphic conventional oil and wet gas potential with significant potential for oil prospectivity in Namur and Birkhead channel systems and stratigraphic traps which have been preliminarily identified through use of Advanced IP technologies.
The Northern PRLs also include a 100% interest in the Paning Tight Gas Discovery made by the Paning-2 exploration well.
The Company will acquire 100% of Senex’s interest in the Northern Fairway PRLs for nominal consideration and assumption of existing abandonment liabilities, PRL fees and PRL expenditure targets.
Managing Director, Joe Salomon, said: “We are pleased to announce this new acquisition in the world class Cooper-Eromanga Basins. The Company has been actively reviewing the basin for more than two years. We see this transaction as taking a major step forward in the Cooper Basin. In acquiring the Paning Tight Gas Discovery, this provides the Company with operatorship and 100% ownership of this discovery and fits the Company’s knowledge and experience in drilling and appraising tight gas. Equally, the robust gas pricing in Eastern Australia provide a great basis for the commercial potential for the Paning Discovery. The basin is well endowed with infrastructure providing for attractive low-cost discovery and development for Oilex”.