Oklahoma lures WA oil players

MINING entrepreneur Tony Brennan is backing a new sharemarket float with a twist, offering investors exposure to oil and gas prospects in the US State of Oklahoma.

The new float will join two other Perth-based companies, Amadeus Energy and Amity Oil, which are already pursuing opportunities in Oklahoma and the neighbouring State of Texas.

Mr Brennan raised $1.6 million last year through an unlisted company, Providence Capital, without having a specific project in mind.

He was subsequently approached by Merril Lynch’s Singapore-based oil and gas analyst Mario Traviati with an opportunity to invest in Oklahoma.

Providence is currently seeking to raise a further $2.5 million prior to changing its name to Tomahawk Energy and listing on the Australian Stock Exchange.

Mr Brennan said a big attraction of the Oklahoma project was recent drilling success in the project area.

Tomahawk’s 50:50 partner, US company Metro Energy, has a 100 per cent success rate from its recent drilling program in the area.

“There is proven prospectivity with our partner making seven discoveries in a row,” Mr Brennan said.

He said Oklahoma was the third largest oil and gas producing State in the US.

As such, it has established infrastructure and offers fast commercialisation potential.

Tomahawk’s project initially involves drilling five exploration wells for a cost of $US1.5 million ($2.1 million) with options over two larger areas.

Amity Oil, which is an established gas producer in Turkey, is pursuing a range of new opportunities.

Locally, it is progressing with a technical review of its Whicher Range gas prospect near Margaret River.

In the US, it is close to finalising its first opportunity.

Amity’s goal is to build reserves and diversify its production base into a low risk environment.

It is also seeking to take advantage of high gas prices in the US.

Managing director Howard McLaughlin reported recently that Amity was aiming to spud its first two wells in Oklahoma in July or August.

It is also seeking to acquire other farm-in opportunities in Oklahoma and Texas, with the first Texas prospect tentatively planned for drilling in August.

Amadeus Energy is an established producer in the US, with gross revenue from oil and gas production of $US2.5 million ($3.6 million) in the March quarter.

It is pursuing further acquisitions in the US and is also funding continued exploration of its existing prospects in Oklahoma and Texas.