Perth-based Amadeus Energy Ltd has agreed to participate in an approximate 24,000 acre 3-D seismic shoot with Union Gas Operating Company.
The shoot is located adjacent to the Raccoon Bend field, Austin and Waller Counties in Texas and will be aided by the existing Western portion of the Raccoon Bend 3-D seismic data comprising 9,800 acres, for a total of 33,800 acres.
The primary objective of this shoot is the Deep Wilcox at depths of up to 14,000 feet. Exploiting the Deep Wilcox is an area that Union has an extremely successful track record using 3-D seismic in South Texas over the past few years.
The deal provides Amadeus access to potential deeper zones in the Racoon Bend field and adjacent areas,
which are currently not being exploited.
Under the terms of the agreement, Union will be the operator of the Deep Wilcox. TNT Engineering Inc will be the operator for the shallow rights, above the Sparta horizons.
Union will fund 50 per cent of the seismic shoot in order to farm-in 40 per cent of the shallow rights in the areas adjacent to the Raccoon Bend field and 50 per cent will be funded by Amadeus and existing Racoon Bend partners for the remaining 60 per cent of the shallow rights.
Union will earn 60 per cent of the deep rights and Amadeus and existing Racoon Bend partners will earn 40 per cent, which is on acreage currently majority controlled by Union.
Costs and timing of the program will be announced as soon as available. It is anticipated the 3-D seismic
shoot will commence during Spring 2006, interpreted by Fall and the first deep test well drilled in early
2007.
