Antrim Energy Inc. has announced today that it has entered into a farm-out Agreement with ONGC Videsh Limited (OVL) whereby OVL will earn a 55% working interest in permit WA-306-P, Barcoo sub-basin, for funding 80% of the gross well cost up to USD$9 million of Antrim's proposed South Galapagos-1 well, offshore Australia.
Antrim will remain operator of the project and retain a 32.5% working interest in the permit. The remaining 12.5% working interest is held by Magellan Petroleum (W.A) Pty. Ltd. The completion of the farm-out Agreement is subject to certain conditions including the approval of the Australian Foreign Investment Review Board.
The South Galapagos-1 well is scheduled to spud in September using Transocean's semi-submersible drilling platform the Sedco 703. The Sedco 703 drilling rig has been released by ChevronTexaco from its successful Wheatstone-1 location and is scheduled to drill one additional well before being made available to Antrim.
Permit WA-306-P contains a cluster of drilling prospects including the Galapagos and South Galapagos targets. The first well, the South Galapagos-1, will be drilled on Permit WA-306-P in 345 metres of water to a projected depth of 3775 metres in the Jurassic section. Drilling time to total depth is estimated to be 32 days.