Dragon Oil plc, an international oil and gas exploration, development and production company, announces that Cooper Energy Limited (“Cooper Energy”), on behalf of the Bargou Joint Venture, has entered into a legally binding Letter of Intent with Grup Servicii Petroliere SA (GSP) with respect to the rig contract for the jack-up rig “GPS Jupiter” to drill the Hammamet West-3 well, offshore Tunisia.
Drilling is scheduled to commence between December 2012 and March 2013 depending on when the rig is released from previous commitments.
The Bargou Joint Venture comprises Dragon Oil (55%), Cooper Energy (30%) and Jacka Resources (15%). In any development phase, Dragon Oil will assume operatorship.
The Bargou Exploration Permit is located in the Gulf of Hammamet in the Mediterranean Sea. The Permit covers an area of 4,616km2 with predominantly offshore exploration prospects and leads in water depths of approximately 50 to 100 metres.
Dragon Oil will pay 75% of the cost to drill the Hammamet West-3 well in the Hammamet West Oil Field, according to an agreed well plan scope, up to a cost cap of US$26.6 million (on a 100% basis). If the well cost exceeds US$26.6 million, costs in excess of this amount will be shared among the joint venture partners pro rata to their participating interest. The well plan consists of a pilot hole followed by a horizontal section to intersect the fractures within the Abiod formation thereby increasing the flow potential of the reservoir.
Dr Abdul Jaleel Al Khalifa, Chief Executive Officer , commented:
“We are pleased with the progress that Cooper Energy, our partner in the Bargou Exploration Permit, has made in securing a rig to drill the Hammamet West-3 well in the Hammamet West Oil Field. Dragon Oil is contributing towards the cost of drilling this exploration well under the farm-in conditions and is sharing our expertise and knowledge of working with complex and challenging reservoirs. We look forward to seeing the results of drilling in 2013.”
[mappress] Press Release, July 16, 2012; Image: GSP