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Tuesday, 02 December, 2008, 22:10 GMT | more >>

Mosaic adds more strings to its bow



By Upstream staff 

Australia’s Mosaic Oil is taking a slice of Bow Energy’s exploration play in the south-western Surat basin after agreeing multi-stage farm-ins with fixed and optional wells.

The farm-in blocks, operated by Bow Energy-led joint ventures, cover a significant part of the Jurassic Boxvale sandstone oil exploration trend and cover an area of about 4000 square kilometres.

As part of the first stage, Mosaic will fund 70% of a A$640,000 (US$604,000) 2D seismic shoot and 35% of a 20 kilometre seismic reprocessing programme, to earn the option to fund 46.667% of a well in the Stratton Block in ATP 608P in order to earn 35% equity in the block.

Mosaic then has the option to enter a second stage farm-in by funding 100% of the cost

for 300 kilometres of additional seismic reprocessing in other Bow permits in the south-west Surat basin, to earn the option to fund a number of other wells.

The first well would lie in the Rookwood Block in permit ATP 608P, excluding the Rookwood oilfield, Mosaic will fund 70% of the costs to earn a 35% equity interest in that block.

Mosaic also has the option to fund 100% of the costs of a well in each of the ATP 664P, ATP 706P, ATP 807P Western Blocks and ATP 805P Southern Blocks to earn a 50% equity in each licence drilled.

As part of the agreement, Sydney-based Mosaic will fund either 35%, for the Rookwood Block, or 50% for other second stage farm-in blocks, of any more pre-drill seismic shoots that maybe needed to mature second stage farm-in well prospects.

In a separate agreement, Bow will fund 50% of the Jawsone-1 well to earn 25% in Mosaic’s PL 15 farm-out Block in the Surat-Bowen basin. Mosaic will fund the remaining 50% of Jawsone-1 and retain a 75% interest in that block. The well will be drilled between August and September.

Mosaic will operate the Bow farm-in programme and continue as operator in all tenements where it earns equity.

“This deal could potentially add up to six wells to Mosaic’s operated drilling programme in the period from 2008 to 2010,” Mosaic’s managing director Lan Nguyen said in a statement today.


Wednesday, 11 June, 2008, 01:33 GMT  | last updated: Wednesday, 11 June, 2008, 01:38 GMT

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