Australia's WHL Energy Commences Farm Out Process for Offshore Victoria Permit

WHL Energy has commenced a farm-out process for VIC/P67, offshore Victoria, which the company believes will help it carry through the exploration drilling phase while retaining meaningful exposure to the permit. 

“A data room has been opened and strong interest has been received from a number of pre-qualified companies, with the process expected to take until the end of the year,” WHL said.

WHL Energy views VIC/P67 as a strategic potential gas supply opportunity for the South Eastern Australia domestic market, with total best estimate Prospective Resources of 1,044 bcf gas and 31.2 MMbbl of condensate and LPG, along with 2C (Best Estimate) Contingent Resources of 74 bcf gas and 2.4 MMbbl of Condensate and LPG for La Bella Field.

“The potential of VIC/P67 has been transformed by the La Bella 3D seismic survey into a material, long term gas supply opportunity from the Otway Basin.  The seismic results exceeded our initial expectations and delivered a portfolio of low risk amplitude supported prospects and a range of high potential prospects that will also have an attractive risk profile,” David Rowbottam, WHL Energy’s Managing Director, commented.

Rowbottam added that the farmout process is being undertaken so that WHL Energy will be carried for the costs of exploration drilling and also to establish a Joint Venture that will take this project through its  next phases – exploration drilling, and if successful, appraisal and development.

“By the end of the year we expect to have the partnership established for the exploration drilling phase and be proceeding to drilling in the second half of 2015 or early 2016,” he said.