Australian junior puts up funds for drilling operation
SYDNEY, September 7, 2021 – Western Gas has reached an agreement with Global Oil and Gas to fund 50% of drilling costs for the offshore Sasanof-1 exploration well on the WA-519-P licence, the Australian operator announced on Tuesday.
The move will see Global Oil and Gas acquire a 25% stake in Western Gas. The junior said that it had received USD 11 million from investors. The overall estimated cost for drilling is around USD 20 million.
The Sasanof field is part of Western Gas’ Equus gas project and is projected to hold 203 bcm (7.2 tcf) of gas and 176 million barrels of condensate. The project has a projected 32% success rate.
“The 25% earn-in to the Sasanof project will enable the company to be the only junior in Australia with significant exposure to the North West Shelf, which in my opinion contains some of the best drillable offshore prospects in Australia,” said Patrick Glovac, non-executive director of Global Oil and Gas.