Melbana Energy, Total and Santos have modified their commercial agreement to accelerate the drilling in the Beehive prospect.
Total and Santos currently have an option to acquire a direct 80 per cent participating interest in the WA-288-P Permit in return for continuing to fully fund the costs of all activities until completion of the first well.
Santos and Total had undertaken a 3D seismic survey of the prospect earlier this year and the date is currently being processed.
Melbana has now agreed to remove the requirement for Total and Santos to undertake additional advanced seismic processing, which is now regarded as no longer necessary, in order to ensure readiness for potential drilling of the Beehive-1 exploration well in 2020.
A final data set on the already acquired information from the seismic survey is due to be received by February 2019.
Melbana CEO Robert Zammit said the decision to accelerate the path to drilling showed the confidence the three companies had in the viability of the prospect.
“The changes were initiated by Total and Santos and are an illustration of their desire to progress evaluation of Beehive on a timely basis and ensure readiness to drill the Beehive-1 well in 3Q 2020 should they exercise their option to do so,” he said.
“If Total and/or Santos exercise their option to drill, Melbana retains a 20 per cent interest in WA-288-P and is fully carried until the completion of drilling of the first well in the permit.”
The Beehive Prospect is located in the Joseph Bonaparte Gulf, approximately 225 km southwest of Darwin.
For more information visit the Melbana Energy website.
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