In May 2017, Whitebark formalised a Joint Venture partnership to drill the 160 MMbbls Xanadu prospect. Whitebark has committed to funding 20% of the cost of the conventional Xanadu-1 well to earn a 15% interest in the Xanadu prospect and TP15 alongside permit operator Norwest Energy (ASX: NWE), Triangle Energy and 3C Group. Xanadu-1 is an offshore project that will be drilled from an adjoining onshore permit operator by Norwest.
The TP15 Joint Venture interests and contributions to the well costs will be made up as follows:
A Letter of Intent (LOI) has been signed with Enerdrill Pty Ltd to use Rig 3 for the drilling of Xanadu-1. Mobilisation to the Xanadu location will commence following Rig 3’s current obligations in the Mid-West, subject to Department of Mines and Petroleum regulatory approvals being granted to allow Norwest to conduct drilling operations at the Xanadu-1 location.
The technical and operational planning for the drilling of Xanadu-1 is close to finalisation. Xanadu-1 is planned to spud in late 2017.
In addition to the farm-in, Whitebark acquired 100,000,000 shares in Norwest Energy for $200,000 giving Whitebark an additional indirect interest of presently ~3.7% in Xanadu / TP15.
TP15 is located near Dongara in the offshore northern Perth Basin, Western Australia. The Joint Venture is planning to drill a well on the Xanadu prospect, located at the southern end of TP15 (see map below), which is estimated to hold an un-risked recoverable resource of 160 MMbbls1 (Refer Table 2 below) late in 2017.
Xanadu-1 will target Permian sands from a depth of about 800m. Near-shore sands of the Dongara Sandstone represent the primary target, with secondary targets in the fluvio-deltaic Irwin River Coal Measures and the regressive marine sands of the High Cliff Sandstone.
Mapping of 2D marine seismic data has provided a comprehensive regional interpretation of the structural setting and charge history for the Xanadu oil prospect.
The structural mapping, which is based on good quality 2D seismic data and high-resolution gravity data from a 2009 airborne 3D Full Tensor Graviometry Survey, indicates that the Xanadu prospect is geologically similar to both the Cliff Head and Hovea structures.
In estimating the recoverable oil volumes summarised in Table 2 below, a 50 per cent recovery factor has been assumed.
Norwest’s assessment of the chance of discovery and chance of development associated with the Xanadu prospect are provided in the following table: As per last quarterly.
The information on the Xanadu prospect is based on information compiled by Mr. Dean Powell of Powell Seismic Services. Mr. Powell holds a Bachelor Degree of Applied Science (Physics) and is a member of the Society of Exploration Geophysicists. He has over 40 years of experience in petroleum exploration. Mr. Powell has consented in writing to the inclusion of the information stated in the form and context in which it appears.