Melbana Energy Ltd is looking to farm-down its 100% held interest in exploration licence WA-488-P, located in the Bonaparte Basin. After the withdrawal of farm-in options by Total and Santos, Melbana may well be offering a new opportunity for a partner to enter ahead of drilling the Beehive Prospect. With Santos' unexercised farm-in option, Melbana now returns to holding 100% interest and will be seeking for a new partner ahead of encountering drilling costs which could be in the order of USD 50 million.    Currently, the Beehive 1 well is scheduled to be drilled before 21 December 2021 after Melbana received approval for a 12-month suspension in May 2020. Santos had already outlined that rig availability was likely to delay the well and that a permit extension may be required to facilitate drilling. The new schedule would still dependent on Melbana farming down its interest and costs.    Santos, and Total, entered a farm-in to the permit on 12 December 2017. Under the agreement, Total and Santos initially fully funded a 600 sq km 3D seismic survey over the Beehive Prospect in return for an option to acquire an 80% participating interest in the permit (together or individually split). The companies then had the option to choose whether to continue to the well drilling phase. Upon receipt of the final dataset, which was thought to have been completed in February 2019, Total and Santos had an initial six months to proceed with the interest acquisition and commit to funding the Beehive-1 exploration well. Santos took the option to farm-in, but Total dropped its option.     Santos therefore decided to take on 80% interest and fully fund the well under its farm-in with Melbana. However, the agreement was conditional on Santos farming down its interest option by 4 March 2020. This deadline was missed meaning Melbana retains 100% interest and operatorship of the permit and could now restart the farm-down process.     The Beehive Prospect is a shallow, new play type with global analogues. The primary target is thought to be a Carboniferous Carbonate build up play, which is analogous to the Ungani and Tengiz discoveries. The carbonate platform has been interpreted by Melbana to be approximately 18 km across with a mapped closure around 140 sq km. As a secondary objective the prospect contains an Ordovician Buried Hill play. Prospective recoverable resources have been estimated, with a Best Estimate of 558 MMboe and 305 MMboe for the Carboniferous Carbonate and Ordovician Buried Hill plays respectively. If a discovery is made, Melbana reports that development plans could include an FPSO or pipeline options to existing infrastructure including Ichthys and Blacktip developments.  WA-488-P, which covers an area of 4,100 sq km, was awarded on 22 May 2013. Melbana Energy Ltd holds 100% interest after interest options by Santos and Total either expired or were dropped. Melbana has reported to be in discussions with potential partners.
Melbana Energy Ltd is looking to farm-down its 100% held interest in exploration licence WA-488-P, located in the Bonaparte Basin.