ANTRIM ANNOUNCES FARMOUT OF SOUTH GALAPAGOS-1 WELL, OFFSHORE AUSTRALIA
Antrim Energy Inc. has entered into a farm-out agreement with ONGC Videsh Ltd. (OVL), whereby OVL will earn a 55-per-cent working interest in permit WA-306-P, Barcoo subbasin, for financing 80 per cent of the gross well cost, up to $9.0-million (U.S.), of Antrim's proposed South Galapagos No. 1 well, offshore Australia. Antrim will remain operator of the project and retain a 32.5-per-cent working interest in the permit. The remaining 12.5-per-cent working interest is held by Magellan Petroleum (W.A.) Pty. Ltd. Completion of the farm-out agreement is subject to certain conditions, including the approval of the Australian Foreign Investment Review Board.
The South Galapagos No. 1 well is scheduled to spud in September using Transocean's semi-submersible drilling platform the Sedco 703. The Sedco 703 drilling rig has been released by Chevron Texaco from its successful Wheatstone-1 location and is scheduled to drill one additional well before being made available to Antrim.
Permit WA-306-P contains a cluster of drilling prospects including Galapagos and South Galapagos. The first well, South Galapagos No. 1, will be drilled on permit WA-306-P, in 345 metres of water, to a projected depth of 3,775 metres in the Jurassic section. Drilling time to total depth is estimated to be 32 days.
ONGC Videsh Ltd. is a wholly owned subsidiary of the Oil and Natural Gas Corp. Ltd., India's largest integrated oil and gas company. OVL operates exclusively in international markets and is active in Asia Pacific, the Middle East and Africa.
Stephen Greer, chairman and chief executive officer of Antrim, said: "OVL's participation in this strategic farm-out underscores the high potential of our Australian drilling operation. The farm-out also ensures that Antrim will be well funded to participate in any development of a successful discovery in Australia and will further allow the company to accelerate its drilling program in the United Kingdom North Sea. Antrim retains operatorship in the Australian venture and the company has reinforced its strategy of high working interests in all of its high-impact exploration drilling programs."
WARNING: The company relies upon litigation protection for "forward-looking" statements.
K.D.
AI
