drill plans crackling south

  1. 3,800 Posts.
    WON Looks like a good trade to me.
    I bought some today at 1.2/1.3. Would have bought more and kept chasing the sellers if I had the cash.
    Will hold till drilling.

    Prospect size 20 million barrels.
    WON have 20%
    Good partners- apache, tap and strike.
    Good neighbourhood.
    shallow water, shallow hole.

    WON market cap only $2.5m so plenty of upside after months in the doldrums.

    acturtle


    West Oil announces that it has reached agreement with Apache Energy
    to acquire a 22.5% interest in EP-341 on the Peedamullah Shelf in the
    inner Barrow Sub-basin, offshore Carnarvon Basin, Western Australia.

    The Crackling South Prospect will be drilled in early 2003. The
    Crackling South Prospect has potential for estimated recoverable
    reserves if hydrocarbons are discovered and if the structure is full
    to spill point of 20 million barrels. It is located in 12 metres
    water depth and the prognosed depth to the main objective sands is
    400 metres. The well will be drilled to a total depth of 500 metres
    with the main objective being the Birdrong Sandstone with good
    porosity and permeability. There are many other similar prospects in
    the permit if Crackling South-1 is successful (see map).

    Apache has the option to acquire an 11.25% interest in the permit
    from West Oil for a period of 90 days from the time that Apache is in
    receipt of the results of the Crackling South-1 well.

    In consideration for the 11.25% interest Apache shall fund West Oil's
    share (11.25%) of the appraisal and feasibility costs up to a capped
    amount of $2.5 million.

    ENTITLEMENTS ISSUE

    As a result of the agreement with Apache the Directors of West Oil
    have requested the Underwriter, and the Underwriter has agreed, to
    allow shareholders the opportunity to apply for shares on the
    Shortfall Application Form attached to the Prospectus until 10 th
    December 2002.

    The agreement with Apache is subject to the parties executing a Sale
    and Purchase Agreement, the agreement of the Designated Authority and
    Tap Oil agreeing to not exercising its rights of first refusal over
    the interest in respect of the assignment to West Oil and the
    re-assignment to Apache should Apache exercise its option.

    Interest holders in EP-341 are as follows:

    COMPANY INTEREST INTEREST INTEREST POST
    PRE-SALE POST-SALE APACHE OPTION
    West Oil 0% 22.5% 11.25%
    Apache 45% 22.5% 33.75%
    Tap Oil (Operator) 50% 50% 50%
    Strike Oil 5% 5% 5%

    For further information please contact Charles Morgan, Managing
    Director Ph: 08-9226 2070 or email: [email protected]


    A copy of the full announcement, including Maps, is available in PDF
    format on www.asx.com.au. Alternatively it is available for purchase
    from ASX Customer Service on 1 300 300 279.
 
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