Origin Inks Farm In Agreement for Two Unconventional Gas Block in Cooper Basin

Origin Energy has inked two farm-in agreements with Senex Energy to acquire exploration interests in two unconventional gas blocks in South Australia’s Cooper Basin, Origin announced Monday.

The two gas blocks (Area A and Area B1) comprise a number of prospective sub-basins within the Cooper-Eromanga Basin - including the Allunga, Nappamerri and Patchawarra troughs - and provide exposure to multiple unconventional play types including tight sands, shale and deep coal seams, the company said.

According to Origin, the company plans to progressively invest $97 million to contribute to an exploration program on each gas block in stage one.

“Upon their completion, Origin will hold a 40 per cent participating interest in Area A and a 30 per cent participating interest in Area B,” the company added.

In stage two, Origin will then have the option to increase its working interest in both blocks by 10 per cent via an additional $72 million investment to contribute to a pilot appraisal program. In the event Origin elects not to exercise this option, the company would continue to hold its existing participating interests.

Senex will retain operatorship of Area A and Area B with Origin defining the technical inputs to the work programs. After completion of the pilot appraisal programs Origin would have the option to become operator in each area.

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