VPE 0.00% 41.5¢ victoria petroleum nl

of interest from another board

  1. 370 Posts.
    01.05.2003
    Victoria Petroleum Realises Some Cash From The Successful Jingemia Discovery In Perth And Has Won A Highly Prospective New Licence In South Australia
    When things were quiet in Australia for years, Victoria Petroleum, the Oz junior, diversified into the US. It has acreage in the San Joaquin Basin and the Salinas Basin in California; a mixture of production and exploration potential through a 16 per cent stake in the Nasdaq quoted Kestrel Energy which has output of some 198 barrels of oil equivalent a day; and some separate production and asset value from interests in Wyoming, New Mexico, Louisiana and Oklahoma. Proved reserves in these interests are put at 2.3 million barrels of oil equivalent which has a Net Present Value of A$17 million discounted at 10 per cent.

    In the past year Victoria’s activities in Australia have begun to come right, well mostly. The group has been involved in the successful Jingemia discovery onshore the Perth Basin. The company held a 5.8 per cent stake in this find which flow tested at 1,850 barrels of oil a day, and could reach production of 4000 barrels of oil a day by the middle of the year.

    Chief Executive John Kopcheff was delighted to be involved in Jingemia, which has been variously estimated to hold between 5 and 12 million barrels of oil recoverable. But he also had high hopes for the company’s interests in WA-254-P permit in the Carnarvon Basin where three wells with Apache Energy as operator were drilled subsequent to Jingemia last summer. One interest, the Ceres prospect, some 21 kilometres from the producing Stag Field, was thought on the basis of 3D seismic to have somewhere between 14 million and 23 million barrels of oil recoverable. Alas although some oil was found the three wells turned out to non-commercial.

    Victoria Petroleum has put this disappointment behind it and is moving on. It has just announced that it has entered into an agreement with Arc Energy and Roc Oil - two other Australia juniors - to sell each company a 0.25 per cent interest in EP 413, North Perth Basin. The sale of this 0.5 per cent interest in EP 413 and the Jingemia Oil Field will realise a total of A$300,000 for Victoria and leave it with a 5.2685 per cent interest in EP 413 and the Jingemia Oil Field.

    The company has also recently announced that it has been awarded Exploration Licence 104, previously known as the Cooper Basin Block C099-E.

    This was part of the acreage that Santos, the Australia major, was obliged to release to the industry in November 1999. PEL 104 covers an area of 1.069 square kilometres and is immediately adjacent to the Tirrawarra Oil Field, the largest oil field in the Cooper Basin and onshore Australia, with estimated recoverable reserves of 70 million barrels of oil and 340 billion cubic feet of gas. PEL 104 is considered highly prospective for Jurassic and Permian oil and gas.

    Since the Santos stranglehold on the area was eased, other small explorers have gone in and prospered. In August 2002, the Sellicks No 1 oil discovery by the Beach Petroleum/Cooper Energy consortium 30 kilometres to the south of PEL104 has provided encouraging Permian oil potential on the western edge of the Permian Cooper Basin with oil flow on production test of 2160 barrels of oil per day.

    Victoria has received farm-in interest from other companies but currently holds a large 80 per cent equity stake. It believes it should do well in the South Australian portion of the Cooper Basin where the latest round of 2002 on Santos released acreage has a 50 per cent discovery success rate.

    So Victoria has gone from being another hopeful prospector to a small producer with around 200 barrels of oil equivalent a day. It realised some cash from the Jingemia and still has the possibility of a substantial step up through exploration.

 
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