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Vintage Energy inks pact with Metgasco and RCMA Australia for Cervantes Oil Prospect

Gasoil News - Published on Tue, 26 Nov 2019

Image Source: Jade Cervantes
Vintage Energy Ltd announced that it has signed a binding term sheet to farm-in for 30% of the Cervantes oil prospect with Metgasco Ltd and RCMA Australia Pty Ltd. To give term sheet effect to the, Jade is preparing a farm-out agreement for the Cervantes Joint Venture, with a planned execution date prior to 18 December 2019. The Joint Venture is targeting to spud a well in Q1 FY21 and has an option to drill a second well into a separate prospect. The Cervantes prospect sits within L14, a 39.8 km2 Perth Basin production license granted over the Jingemia oilfield and surrounds. The license is in good standing and not due to expire until June 2025.

The funding for the farm-in, net to Vintage, to acquire a 30% interest in any commercial Permian discovery at Cervantes is as follows
50% of the well cost
AUD 200,000 of evaluation and exploration costs

The well is expected to cost between AUD 5-7 million gross, with any well costs above a cap of AUD 8 million gross reverting to Vintage’s joint venture equity level of 30%. Vintage will pay Metgasco AUD 100,000 for future exploration expenditure relating to Cervantes and pay Jade AUD 100,000 relating to seismic re-processing over the L14 license.

Source :

Posted By : Yogender Pancholi on Tue, 26 Nov 2019
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