Unconventional hydrocarbons firm Warrengo Energy has signed a $35.7million (£21.5million) farmout agreement with two Dutch explorers for the appraisal and development of the West Erregulla tight gas field in Western Australia.
Subject to regulatory approvals, Dyas and Mazarine Energy will take over 30% and 50% interest respectively in the onshore field, estimated to hold 185billion cubic feet of gas in place with a 3trillion cubic feet unconventional upside potential. Warrengo will retain a 20% interest and the operator’s status.
“We are delighted that Dyas and Mazarine Energy have partnered with Warrego and become part of the emerging onshore Western Australian gas story,” said Duncan MacNiven, Warrego director.
“We look forward to working with our Dutch partners in the appraisal and development of West Erregulla. I have no doubt that their technical and commercial capabilities will add value and assist us in maximising returns from this exciting project.”
The companies are looking to start 3D seismic surveying this year, to begin appraisal drilling in 2015.
Under the terms of the agreement, Mazarine is due to take over operatorship from Warrengo following the appraisal programme.