Announcement imminent on Amity Whicher talks

AMITY Oil is hoping to take the Whicher Range gas field off ice mid-year after talks with a potential joint venture partner progressed to an “advanced stage”.

Non-executive chairman Anthony Barton said an announcement of a farm-in by a large overseas organisation was imminent.

Latest speculation says the potential new Whicher Range partner is based in Asia, although reports of strong farm-in interest over the past 18 months have usually indicated the interest has been from North America.

Amity secured drilling approvals for the Whicher Range-5 well in 2001, prepared the well site and took receipt of final casings and tubulars.

However, only disappointment has followed, with farm-ins required to fund the well failing to eventuate.

Amity has a 74 per cent interest in the multi-million dollar well, but has wanted to reduce this by at least 20 per cent.

The company is not only wanting commercial quantities of gas from this well.

New gas supplies for a substantial portion of the South West could be in the pipeline.

After Whicher Range-5 Amity hopes to explore and develop the Whicher Range South field.

Containing a possible six billion cubic metres of gas, this field, together with Whicher Range, could underpin pipeline developments to Busselton and Bunbury and support an on-site gas-fired power plant.

Whicher Range has been about the only thing that has stood still at Amity in the past 18 months.

The company has achieved and advanced production and commercial sales in its Turkish ventures with the government-owned Turkish Petroleum Corporation.

A fifth Gocerler gas field well is soon to be brought into production, to feed into the company’s pipeline and gas processing plant in a strategic industrial region.

Plant capacity is expected to reach 20 million cubic feet per day by the end of next month, to support up to 15 new sales contracts.

Amity currently sells more than 12 million cubic feet each day.

Since October 2001 Amity’s board and management have continued to undergo significant re-structuring.

Sole executive director Peter Allchurch relinquished his managing director’s role in the middle of last year.

Former chairman Richard Elliott took on the role of interim chief executive officer, but retired from the chairmanship and executive roles at the beginning of December.

The company is now seeking a CEO, one who can demonstrate, among other things, “flexibility in leadership style, teamwork and business development”.

“Several interesting responses have come in,” Mr Barton said.