Vintage Energy farms into Perth basin Cervantes prospect
Vintage Energy Ltd., Adelaide, has signed a binding term sheet to farm into the Cervantes oil prospect in Western Australian licence area L14 on the north Perth basin coast just south of, and part of the producing Jingemia oil field production area.
Vintage has taken up a 30% interest leaving other partners Metgasco Ltd. and RCMA Australia Pty Ltd. (Jade) with 30% and 40%, respectively.
The farm-in agreement has a planned execution date prior to Dec. 18. The Cervantes-1 wildcat is scheduled for spudding during the third quarter of 2020. There is an option to drill a second well in a separate prospect.
Vintage will pay 50% of the Cervantes-1 well cost and A$200,000 of evaluation and exploration costs to earn its 30% interest.
Vintage said that the Cervantes structure lies in a gap between the oil discovery trend of Hovea, Jingemia, and (offshore) Cliff Head oil fields. These three fields have produced over 27 million bbl of oil from the main Permian-age reservoirs in the North Perth basin.
The Cervantes feature itself is a high-side fault trap of multiple Permian reservoir units and shares a similarity with the surrounding discovered fields. The prospective reservoirs of Dongara, Kingia, and High Cliff sandstones could contain up to 15 MMbbl on a best (2U) estimate. Close proximity to existing infrastructure means that success could be rapidly brought into commercial production.
