Oil Optimization in Thai farm-out

Eoin O'Cinneide

 16 August 2012 12:59 GMT

Canada’s Oil Optimization has hatched a farm-out agreement which could see it hand over control of almost 60% of one of its assets in Thailand.

The Calgary-based explorer has penned the deal with Rockstone Petroleum with respect to its 100%-owned Block 214/50 in the north Phetchabun basin.

Rockstone is to initially fund a 50-line-kilometre 2D seismic acquisition for $750,000 to get a 20% slice in the block. A further $50,000 would secure it another 2% working interest.

On completion of the seismic, Rockstone will have the option to acquire another 35% and commit to funding the drilling of a well up to a cost of $1.5 million.

Oil Optimization subsidiary JSX Energy Holding will be the initial operator of the block.

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