Prominence acquires interest in Western Gas, Sasanof prospect

Prominence Energy Ltd., Perth, (formerly Sun Resources NL) signed a binding term sheet to acquire a 12.5% share in Western Gas, Perth, which operates the Equus gas project and adjoining permit WA-519-P that contains the Sasanof gas prospect offshore Western Australia.

Sasanof is expected to spud in March-April 2022 with Global Oil and Gas Ltd., Perth, committed to funding 50% of the well in exchange for 25% interest in Western Gas. Together Prominence and Global will fund 75% of the total well costs with Western Gas currently negotiating with other parties to fund the remaining 25%.

Once Sasanof is fully funded, Prominence will issue Western Gas 90 million Prominence shares and 30 million Prominence options. It will also subscribe for US$5 million in shares in Western Gas.

Prominence has secured a firm commitment to raise $12 million (Aus.) before costs via a two-tranche placement. The company will issue 1.2 billion shares at 1₵ each with one free attaching option for every three placement shares subscribed.

The Sasanof prospect lies on the Northwest Shelf about 207 km northwest of Onslow. It has an aerial extent of 400 sq km and lies up-dip from Western Gas’ Mentorc gas-condensate field (part of the Equus field group) and close to Woodside’s Scarborough and ExxonMobil’s Jansz-Io gas fields.

Sasanof has been independently estimated to hold a 2U prospective resource of more than 7 tcf of gas and 175 million bbl of condensate in the Cretaceous-age Lower Barrow Group reservoir target.

The Valaris MS-1 semisubmersible rig has been contracted for the drilling program. The well will be drilled to around 2,500 m subsea in water depth of 1,070 m.

Drilling costs are estimated at US$20-25 million.