Project Profile
Value: Undisclosed
Location: Southern Exmouth sub-basin
Area: 783 km
Water Depth: 1,350m
The Octanex Group originally held 100% of the WA-384-P, WA-385-P and WA-394-P permits that are located in the southern Exmouth Sub-basin. In 2008, Octanex concluded an agreement with Shell for the disposition of a 100% working interest in each of the three permits. Octanex holds residual rights in each of the permits in the form of discovery payments and a 1% royalty over any production from the permits, as well as rights of reconveyance.
Shell has carried out extensive seismic operations over the permits by conducting the Guacamole 2D survey. That survey acquired 3,440 km of new 2D seismic data that has been processed and interpreted. Shell has also made the commitment to Octanex to drill a well in WA-384-P prior to the end of year 6 of the permit (i.e. by August 2012) and acquired a new 3D site survey of 680 km² named Salsa.
With respect to the WA-385-P permit, Shell was initially required to make a decision by 21 August 2010 to commit to drill a well in the permit or re-assign a 100% interest in the permit to Octanex if no drilling commitment was made. Octanex agreed to defer Shell’s requirement to drill a well until year 3 of any renewal of this permit, if and when renewed, on the basis that Shell has committed to acquire a new seismic programme in WA-385-P in year 6 of the initial permit term.
Operators:
Octanex: Holds residual and royalty interests
Shell: 100% working interest
Contractors:
Noble Drilling: Drilling contractor