Cue Energy Resources Ltd has announced that it is looking to farm-down interest in its interest in exploration permit WA-359-P, located in an under explored region of the northern Exmouth Plateau, North Carnarvon Basin. The company is offering 20% interest in the permit in return for participation and part-funding of a drilling programme to target the Ironbark Prospect. In mid-2017 Cue reported that it was in discussion with several parties that are evaluating the farm-in opportunity.    Cue had held 100% interest in the permit.Â  However, in a deal announced on 29 November 2017, Cue has agreed to farm-out 21% interest in WA-359-P to Beach Energy in return for a one-off payment to Cue of AUD 900,000, for past costs, and future payments equating up to 4% of Cueâs cost for the drilling of the Ironbark 1 exploration well.Â  In additional to this, BP has an option to acquire a 42.5% interest in WA-359-P as part of its farm-in to WA-409-P.  BP has the option, as part of a larger farm-in agreement, to acquire 42.5% interest in WA-359-P. The option was valid through until May 2017, but was initially extended to 25 October 2017 and then again to 25 April 2018. This was then further extended, in mid-April 2018, to October 2018 (pending a permit suspension). The permit was extended and suspended on 8 August 2018 for a period of 12 months, effective from the previous expiry schedule on 25 April 2018.  The option to acquire interest in WA-359-P is supplementary to BPâs acquisition of interest in WA-409-P, also in the Carnarvon Basin and adjacent to WA-359-P. On 20 December 2016 Cue Energy announced that the transfer of 80% equity and operatorship of WA-409-P to BP Developments Australia had been approved by NOPTA. An agreement was first entered into by the two companies on 13 October 2016.   WA-359-P, which covers an area of 649 sq km, was awarded on 1 February 2005. Cue is offering a farm-in opportunity to help fund the drilling of the Ironbark Prospect, scheduled for 2018/2019. If BP and Beach completed their respective farm-ins to the permit it will fund up to 54% of the drilling costs, with gross estimated dry-hold costs being AUD 30 â 50 million. The commitment to drill the well must be made prior to the commencement of the final term. Geotechnical studies are also planned to be undertaken as part of the ongoing work commitments.  Gas prospect, Ironbark, is located in the Triassic intra-Mungaroo Formation sands, which has already been proven as a significant gas bearing reservoir in the Perseus and North Rankin fields located approximately 25Â km to the south. An area of up to 400 sq km has been assigned to the prospect, spanning both permits, and is estimated to contain unrisked prospective gas resources in excess of 15 Tcf (based on a technical estimated by Cue). It has been reported that the well would have an expected total depth of around 3,500 m. The WA-359-P period three work commitment - drilling of one exploration well (Ironbark 1), has been suspended since 26 October 2015 and will remain so until 25 April 2018 after Cue received approval to further suspend the permit on 11 April 2016. Cue applied for the suspension to permit time to finalise the planning of drilling the Ironbark prospect and secure a farm in partner (in which BP will now assist).     The Brigadier 1 well, completed in 1978, is the only well within WA-359-P. Shows were recorded within the base Cretaceous/Top North Rankin Formation around a depth of 2,810Â m.     The main oil prospect within WA-359-P, Sherlock (a combined structural and stratigraphic trap), is estimated to contain 300Â MMb oil in place. Work was undertaken in 2014 to lower the geological risk of the prospect.Â  The primary target is expected below the base Cretaceous.     The North Carnarvon Basin is one of the most prospective resource provinces within Australia with over 150 producing and developing fields. Reprocessing of existing multi-client 3D seismic data over the WA-359-P area was completed in November 2013 which has facilitated a geological and geophysical study conducted by Cue. The study is expected to firm up a drilling location, for which Cue seeks a joint venture partner with material interest available, capable of operating and funding the drilling phase of exploration within the permit.Â  A physical dataroom is opened for interested parties.    WA-409-P was initially part of the farm-in in opportunity in conjunction with WA-359-P. Upon BPâs entry, it has agreed to fund Cueâs work programme costs, in WA-409-P, based on the remaining 20% equity interest over the next three years, will be fully funded by BP (estimated at AUD 400,000). The permit was under a 12 month work suspension prior to reaching its expiry date on 29 April 2016. Cue had lodged an application for renewal which was granted on 13 October 2016 for a five year period. One exploration well has been scheduled in term four, at a forecasted cost of AUD 50 million.     WA-409-P, which now covers an area of 324 sq km, was awarded on 30 April 2008.Â  Cue acquired 100% interest after the withdrawal of joint venture partners Apache Energy and Moby Oil and Gas in February 2015. Apache had previously been granted two contract extensions/suspensions of the sixth year work programme, totaling 12 months. The extensions allow time to complete seismic reprocessing of existing Zeebries multi-client MC3D data (2011) and select potential well locations. This will now be conducted within the first three year term of the renewed work conditions.     WA-359-P, which is located in water depths of 200Â m to 500Â m, was awarded on 24 January 2005.Â  Participants in the permit are: Cue Energy Resources (79% + operator) and Beach Energy Pty Ltd (21%).Â  A further 42.5% interest may be farmed out to BP.    Companies interested in pursuing the farm-in opportunity should contact:     Matthew Boyall, Commercial Manager    Email: Matthew.Boyall@cuenrg.com.au    Tel: +61 (0) 3 8610 4000
Cue Energy Resources Ltd has announced that it is looking to farm-down interest in its interest in exploration permit WA-359-P, located in an under explored region of the northern Exmouth Plateau, North Carnarvon Basin. The company is offering 20% interest in the permit in return for participation and part-funding of a drilling programme to target the Ironbark Prospect. In mid-2017 Cue reported that it was in discussion with several parties that are evaluating the farm-in opportunity.