Perth-based oil and gas junior WHL Energy says it is looking for farm-in partners after being awarded a 100 per cent working interest in a highly prospective gas exploration block in Victoria’s Otway Basin.
WHL announced today the Victoria Offshore Petroleum Joint Authority had offered it the exploration block V11-2, which contains the La Bella discovery and several other offset gas prospects and leads.
WHL said it has commenced farm-in discussions for the permit area, having received an early farm-in offer for the block, subject to the award of the acreage.
Hartleys released a research note today putting a speculative buy on WHL, saying it expected a farm-in deal would be announced in the near future, significantly de-risking the company’s portfolio.
Managing director Steve Noske said WHL was confident the La Bella gas field would provide a significant return, with a 2C contingent resource of 158 PJ of gas and 1.2 million barrels of condensate.
Nearby leads and prospects contained in the block have the potential to add over 0.5 trillion cubic feet of gas and 4.9 million barrels of condensate, WHL said.
The company is targeting early 2016 for first commercial production from La Bella.
Mr Noske said the offer of V11-2 met one of the company’s key strategic priorities: capturing a “line of site to production”.
“The company’s plan is for the significant levels of revenue expected to eventuate from the development of La Bella from 2016 to further underpin the company’s growth into Africa,” he said.
“This is a major coup for WHL Energy, company that until last year was best known as a wind energy proponent.
“Within the last 18 months the company has acquired and rapidly advanced its large offshore oil and gas exploration interests off the coast of the Seychelles, participated in a winning JV bid for a high profile exploration permit off the Western Australian coast and has now been awarded a much sought after, proven gas block on the eastern side of Australia.”
At 10:15AM, WST, WHL shares had lost 5.4 per cent on the Australian Securities Exchange, trading at 5.3 cents.
