PROMINENCE ENERGY LTD For personal use only
ABN 69 009 196 810
(Incorporated in Western Australia)
Level 2, 30 Richardson Street
West Perth, WA 6005
PO Box 1786, West Perth WA 6872
T+61 8 9321 9886 F +61 8 9321 8161
15 March 2022
ASX Limited
Company Announcements
Level 4, 20 Bridge Street
SYDNEY NSW 2000
WESTERN GAS SECURES 100% FUNDING COMMITMENTS FOR SASANOF-1
Prominence Energy Ltd ("PRM") is pleased to announce that Western Gas Corporation Pty Ltd (WGC) has advised PRM that they have secured funding commitments1 for the remaining 25% of the Sasanof-1 exploration well, as per the attached Western Gas press release.
Highlights
- Western Gas Corporation Pty Ltd has secured funding commitments for the remaining 25% of the Sasanof-1 well
- PRM is acquiring a 12.5% interest in the Sasanof prospect by funding 25% of the well cost
- PRM will move to completion of the acquisition with execution of the formal documentation.
- Sasanof is a multi-TCF gas exploration prospect2, with an estimated 32% geological chance of success
- All the required regulatory approvals are in place, and all major service and supply contracts for the drilling are finalised
- Drilling of Sasanof-1 expected to commence in May 2022
As Announced on 7 December 2021, PRM has signed a binding term sheet to acquire a 12.5% interest in the Multi-TCF Sasanof Gas Prospect located in exploration Permit WA-519-P on the Northwest Shelf, Australia and will acquire a 12.5% shareholding in the company which is the permit holder of the Sasanof Prospect, Western Gas (519 P) Pty Ltd (the holding company for Sasanof).
Commenting on the Announcement Alex Parks Managing Director of PRM stated: "Securing the final funding commitments for Sasanof-1 is excellent news and PRM and WGC will now be able to complete the PRM acquisition of 12.5% beneficial interest in Sasanof."
Sasanof-1 Prospect Interests
Company | Funding Interest | Working Interest |
Western Gas Corporation Pty Ltd | 25% | 62.5% |
Global Oil and Gas Limited | 50% | 25% |
Prominence Energy Limited | 25% | 12.5% |
- Subject to formal binding documentation
- See ASX release of 7 December 2021 for details on Resource assessment and cautionary statement.
For personal use only
Authorised by the Board of Prominence Energy Limited
Yours faithfully
Alexander Parks
Managing Director
For further information please contact Prominence Energy at:
Web: www.prominenceenergy.com.au
Phone: | +61 8 9321 9886 |
Email: | admin@prominenceenergy.com.au |
2
15 March 2022
SASANOF-1 WELL FULLY FUNDED
HIGHLIGHTS
• Western Gas has secured funding commitments to fully fund the drilling of the Sasanof-1
only• | exploration well on the North West Shelf |
All major service and supply contracts are now awarded | |
• | Drilling campaign is planned to start in May 2022 using the Valaris MS-1 rig |
use | Sasanof is a 2U Prospective Resource of 7.2 Tcf gas and 176 Million bbls condensate (P501), |
• | |
with 32% geological chance of success |
Western Gas is pleased to advise that Sasanof-1 exploration well is fully funded and all major contracts have been awarded for the drilling of the well on the North West Shelf in May 2022.
Western Gas Corporation Pty Ltd (WGC) has secured funding commitments for the remaining 25% of the Sasanof-1 well drilling campaign. WGC will provide this funding to Western Gas (519 P) Pty Ltd (the holding company for Sasanof) to maintain its working interest at 62.5%.
personalWestern Gas will continue to assess its preferred level of equity in WA-519-P and is in discussion with other otential investors.
Together with the existing committed funding from Global Oil & Gas Ltd (ASX:GLV) (50%) and Prominence Energy Limited (ASX:PRM) (25%), the drilling program is now fully funded on the following interests:
Company | Funding Interest | Working Interest |
Western Gas Corporation Pty Ltd | 25% | 62.5% |
Global Oil and Gas Limited | 50% | 25% |
Prominence Energy Limited | 25% | 12.5% |
Table1: Funding and working interests in Western Gas (519 P) Pty Ltd.
RIG MOBILISATION AND SPUDDING SET FOR MAY 2022
ForWestern Gas and Valaris, the owner and operator of the MS-1semi-submersible drill rig, are progressing plans for the mobilisation of the rig to commence drilling of Sasanof-1 in May 2022.
With all regulatory approvals in place, logistical operations have now commenced with all long lead items being delivered to the Port of Dampier in preparation for loading on to the MS-1 in late April 2022.
ALL MAJOR SERVICE AND SUPPLY CONTRACTS AWARDED
Western Gas also advises all key contracts are being finalised following the approval of Recommendations for Award for the oil field and logistics services to support the drilling campaign.
Western Gas | P: +61 (0)8 6323 2311 |
Level 3, 680 Murray St. West Perth. 6005 | www.westerngas.com.au |
Contract awards include:
• Schlumberger - Master Services Agreement, for services critical to assessing the reservoir and
only | formation fluids and, in a success case, providing quality assured data to support resource definition. |
• Baker Hughes - equipment materials and services for deployment of the wellhead and conductor and | |
provision of drill bits. | |
use | • Halliburton -cementing services, materials and equipment and contingency liner equipment and |
services. | |
• Weatherford -Tubular Running Services and equipment. | |
• Total Marine Technology - provision of Remote Operating Vehicle services on the MS-1 | |
• Maersk Marine - provision of the Maersk Mover in support of anchor handling and logistics support. | |
• Solstad Marine - provision of the Far Senator in support of anchor handling and logistics support | |
• GO Marine - provision of the GO Spica in support of rig tow and logistics support |
• Toll Energy - Toll Dampier Marine Supply Base.
• Wild Well Control - well control support services including Capping Stack membership and access. Contractors already supporting the campaign are:
personal | • AGR - drilling campaign management |
• Valaris - provision of the Valaris MS-1 drill rig | |
• Xodus - environmental consultancy services | |
ALL REGULATORY APPROVALS IN PLACE
National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) (Regulator) acceptance of the Environment Plan (and Oil Pollution Emergency Plan), MS-1 Safety Case Revision and the Well Operations Management Plan (WOMP) were secured in recent months.
COMMENT - WESTERN GAS
"With funding secured and all major contracts awarded, Western Gas and our partners GLV and PRM, are in Forposition and chomping at the bit for the drilling of this highly anticipated exploration well targeting up to
17.8 Tcf gas and 449 Million bbls condensate."
Western Gas | P: +61 (0)8 6323 2311 |
Level 3, 680 Murray St. West Perth. 6005 | www.westerngas.com.au |
onlyERCE estimates the Sasanof Prospect to contain a 2U Prospective Resource of 7.2 Tcf gas and 176 Million bbls condensate (P501), with a high case 3U Prospective Resource estimate of 17.8 Tcf gas and 449 Million bbls condensate (P101).
ABOUT THE SASANOF PROSPECT
The Sasanof Prospect covers an area of up to 400 km2 and is on trend and updip of Western Gas' liquids rich, low C02 Mentorc Field.
Sasanof is a large, seismic amplitude supported, structural-stratigraphic trap in the high-quality reservoir usesands at the top of the Cretaceous top Lower Barrow Group formation on the Barrow Delta within the
Exmouth Plateau.
Sasanof-1 will be Western Gas' first well drilled from its extensive exploration portfolio surrounding the existing Equus Gas Project that contains a discovered resource of 2 Tcf and 42 MMbbl (2C Gaffney Cline2). The Equus Gas Project has a historic exploration drilling success rate of 88%, with 15 discoveries from 17 wells.
ABOUT WESTERN GAS
Western Gas is a Western Australian company focused on exploring and accelerating development of our strategic resource position in the heart of the North West Shelf, Australia's premier production basin. Our strategy is focussed on adding significant value to our portfolio through high impact exploration drilling and maturing our Equus Gas Project to meet growing domestic and export gas demand.
NOTES
Qualified Petroleum Reserves and Resources Estimator Statement
Note 1 - The Sasanof undiscovered resources figures in this announcement are based on an Independent Assessment of Hydrocarbon Volumes for the Sasanof Prospect, Western Australia completed by ERC Equipoise Ltd in August 2021.
personal | CONTACTS | |
INVESTORS | MEDIA | |
Andrew Leibovitch | Tony Johnson | |
For | ||
+61 417 981 817 | + 61 439 500 799 | |
aleibovitch@westerngas.com.au | tjohnson@westerngas.com.au | |
Will Barker | For more information visit | |
+61 417 449 501 | www.westerngas.com.au | |
wbarker@westerngas.com.au | /company/westerngas/ | |
Western Gas | P: +61 (0)8 6323 2311 | |
Level 3, 680 Murray St. West Perth. 6005 | www.westerngas.com.au |
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Prominence Energy Ltd. published this content on 14 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 March 2022 22:59:04 UTC.
