MEO Australia is discussing the farm-out of WA-488-P containing the giant Beehive oil and gas prospect with four other companies, the firm informed today.
The Australian oil and gas company started the process to secure funding partners to perform a technical assessment and drill the prospect located offshore Western Australia.
“In the current environment, it is encouraging that four companies have actively engaged in the farm-out process so far,” MEO Managing Director & CEO Peter Stickland, said.
Offshore Block Farm-Out Progressing in Australia
The farm-out process follows the recent conclusion of a seismic reprocessing and inversion project, which MEO says has reinvigorated interest from major players.
Until now, four major companies became involved in the process and are actively reviewing technical data for the block, the company explained in a statement.
MEO will be expecting responses from the potential interest parties by the end of October 2016, but timing will remain subject to ongoing market conditions and the addition of new parties to the process.
“MEO’s ambition is to bring parties into the WA-488-P joint venture to fund the advancement and ultimately drilling of Beehive. Doing so would not only secure an exciting drilling opportunity for MEO shareholders but enable MEO to focus its resources on its Cuba opportunities where it is the only ASX listed company with exposure to the Cuban oil & gas industry,” the CEO added.
Largest Undrilled Prospect Offshore Australia
The Beehive prospect is located in the Bonaparte basin, at a water depth of 40 metres (131.2 feet), next to the producing Blacktip field.
According to MEO the prospect could hold several million barrels of oil and is potentially the largest undrilled prospect offshore Australia, which could be developed through the use of a pipeline or a floating production storage and offloading (FPSO) unit.
“The Beehive prospect is one of the largest hydrocarbon structures in Australia and it is widely recognised that the recent seismic reprocessing and inversion have enhanced the characterisation of the prospect,” Stickland added.