RCMA Australia Pty Ltd will be looking to farm-down additional areas of production licence L14, located in the Perth Basin, upon completing seismic reprocessing over the area. In September 2019 a deal was reached with Metgasco to farm-out 60% interest over the Cervantes oil prospect. The deal contains the option for a second area should Metgasco decide by 31 March 2020. RCMA also reported in September that it is now preparing to offer an additional three locations to farm-down once 2D and 3D seismic data reprocessing is complete. Reprocessing is expected to be completed in November 2019.  Under the Metgasco deal, RCMA will be funded 100% for well costs in return for 60% interest in any discovery. Metgasco is looking to farm-down around 30% of its acquired interest in return for 50% funding of its well costs. At this stage, the main objective will be the Cervantes oil prospect - a tilted fault block with targets in the Dongara, Kingia and High Cliff Sandstone.  L 14 contains the Jingemia oil field, which was discovered in November 2002. RCMA is also considering a partner to fund a share of production costs or investment in the Jingemia field production.Â  Under the investment case, an agreement around buying into the business would be considered. The field produced from July 2004 to 2012 before being shut-in after previous operator Origin saw production fall at the field as recovery factors decreased. RCMA, through LEAP Energy, has reviewed the geology and circumstances relating to the causes of reduced production and believes improved oil recovery is possible along with attic oil remaining. Production restarted in December 2017 and is currently at around 330 bo/d from four wells with the assistance of jet pumps. Around 4.5 MMbo has been produced up to end 2018.Â  Â     Under the exploration case, RCMA outlines an option for a three well farm-in which would cost an entry partner around AUD 14 million.Â  The target farm-in was for a four-well programme before securing Metgasco as a partner. RCMA has reported that it will consider other possibilities, such as an investment partner.   RCMA currently holds 93.72% interest and operatorship of L 14 with Norwest Energy NL holding the remaining 6.28%. A sale and purchase agreement is pending relevant authority approvals for RCMA to acquire Norwestâs interest, which is expected to be completed in Q4 2019.   A number of prospects and leads are outlined within the L14 block, which could be targeted for additional resources within the area.Â  The prospects outlined, lie in the north of the permit, are the Black Glove, Agile, Agile West and Tammar structures, with a total potential 20 MMb oil in place, with 9.5 MMb recoverable. Plenty of analogous fields lay within neighbouring licences including Dongara, Waitsia and Cliff Head. Stacked opportunities in the Dongara, Wagina, Irwin Coal Measures, Kingia Formation and High Cliff Formation are considered, which increases the geological chance of success for each prospect.    The commercial chance of success is greatly improved for any new discovery by the proximity of existing infrastructure, including the Jingemia facility which is capable of processing up to 250,000 bbl liquids per day and is currently operational. The Dampier to Bunbury Natural Gas Pipeline is also located 12 km to the east of L14 to provide an efficient route to market in a gas case.    Leads in the south of the permit are considered large structures by RCMA which could fit a gas case. But, the migration pathways are not well defined at this stage. Further seismic would be required to understand the opportunities further.    RCMA contracted LEAP Energy to independently review the licence, and prospects and leads within, and produce a competent persons report on the prospective resources.Â  Interested parties are required to complete a non-disclosure agreement, in order to access LEAP Energyâs dataroom for the licence.    L14 covers an area of 45 sq km and was awarded on 21 June 2004.Â  RCMA is expected to increase its holding to 100%, before farming out interest to Metgasco.    Parties interested in pursuing this opportunity are asked to contact:    Chris Newport, RCMA Energy â email: chris.newport@rcma.comÂ Â Â Â  tel: +61 467 456 043
RCMA Australia Pty Ltd will be looking to farm-down additional areas of production licence L14, located in the Perth Basin, upon completing seismic reprocessing over the area.