Offshore staff
(Asia-Pacific) - Australian-Canadian Oil Royalties Ltd. (ACOR) says Apache has signed a farmout agreement to become the operator of VIC/P45.
VIC/P45 consists of 214,896 gross acres and is located in the offshore waters of the Bass Strait in the prolific Gippsland basin.
Apache agrees to pay 100% of the cost to drill the first well; in return Apache will earn a 66.6667% working interest.
Depending on the results from the first well, Apache may elect to drill a second well and pay 100% of the cost to drill the second well.
Any discovery location, as defined in the Petroleum (submerged Land) Act shall, at Apache's discretion, be exercised from any such reconveyance (should there be any).
In addition, Apache has undertaken to assume its share of royalty obligations to third parties.
Upon approval of this transaction by regulatory authorities, Apache will become operator of VIC/P45, and begin to select the drilling location for the first well.
The well is planned to be drilled after a suitable drilling rig can be contracted.
IMI, an independent third party geological appraisal company, estimated that VIC/P45 could possibly contain approximately 350 MMbbl of oil and 4 tcf of gas.
04/01/06
