OilVoice - Pan Pacific Provides Update on Timor Sea Drilling

Pan Pacific Provides Update on Timor Sea Drilling

Wednesday, November 11, 2009

Oilex Ltd the operator of JPDA 06-103 has advised that the semi-submersible drilling rig the “Songa Mercur” was released to Oilex on 11 November 2009, and is now under tow from Dampier to the first well location. The rig is contracted to drill two wells in JPDA 06-103 (with an option of one additional well), and drilling is expected to start in late November 2009.

As previously announced Pan Pacific Petroleum (JPDA 06-103) Pty Ltd (“PPPJ”) has agreed to acquire 15% Participating Interest in the JPDA 06-103 Production Sharing Contract comprising 5% interest from each of Global, Bharat and GSPC.

Under the terms of the Farmout Agreements, PPPJ will contribute to the costs of the first two commitment wells which will target the Loré and Lolotoe prospects. The Farmouts are subject to approval by the Designated Authority, the Autoridade Nacional do Petróleo of Timor Leste (“ANP”), which will be requested as soon as PPPJ’s earning obligations have been completed.

JPDA06-103 is located within the northern Bonaparte Basin, offshore northwest Australia, within the joint petroleum development area (the “JPDA”) issued pursuant to the Timor Sea Treaty between Timor-Leste and Australia. The contract area is adjacent to several existing oil fields such as Laminaria and Corallina and the recent Kitan discovery and prospects similar to this successful oil play are believed to exist in JPDA 06-103.

Upon completion of PPPJ’s farmin obligations and subject to ANP approval the participating interests will be;
Pan Pacific Petroleum (JPDA 06-103) Pty Ltd 15%
Oilex (JPDA 06-103) Ltd (Operator) 10%
Global Energy Inc 20%
GSPC (JPDA) Ltd 20%
Bharat PetroResources JPDA Limited 20%
Japan Energy E&P JPDA Pty Ltd 15%