Two-Well Farmout And Tolling Agreement Executed With Refine Energy Pty Ltd

Two-Well Farmout And Tolling Agreement Executed With Refine Energy Pty Ltd
Perth Basin, Western Australia, 26 October 2020

RCMA Australia Pty Ltd is pleased to announce that it has entered into a two-well farmout and tolling agreement with Refine Energy Pty Ltd (“Refine Energy”) on 22 October 2020. RCMA Australia remains operator of the permit and joint venture.

  • Refine Energy has committed to funding 100% of the exploration costs of the Tammar and Agile exploration wells in the L14 license area in exchange for an earn-in right of 50% of the production from any commercial oil discovery from the wells. These wells are targeted to produce 8.2 million bbls of estimated recoverable oil resource (base case) and additional 250 bopd of oil production from Jingemia attic oil. Tammar possesses potential in development & exploration.
  • The total number of oil exploration wells committed to be drilled over the next 8 months in the L14 block now sits at 3 (Cervantes, Tamar and Agile) targeting material oil prospects in the Dongara, Irwin River Coal Measure, Kingia, Cattamarra, Wagina and High Cliff sandstone formations. Refine Energy’s Rigs are stored onsite reducing drilling costs and timeframes.
  • The L14 license has produced 4.6 million bbls of oil to date and the Jingemia oil processing plant is equipped with over 5,000 bpd of oil processing and 22,000 bpd of water injection capacity. The existing production facilities will generate a fast track to cashflow of months for the parties (rather than years) with an oil refinery 370 km away that can be accessed via a major highway.
  • RCMA Australia is working with other interested parties to further build on its existing committed 3 well drilling program. Please contact newport@rcma.com for further information.

In the event of a discovery, parties will share completion and testing costs on a 50 / 50 basis. The agreement between parties are binding and commits Refine Energy to drilling the J14 Commitment Wells by the first quarter of 2021. Drilling targets have been selected using the reprocessed and reinterpreted 3D and 2D seismic which was provided by Vintage Energy Ltd in 2020 and it has been integrated to well data and surrounding seismic programs.

With this farm in and tolling agreement, Refine Energy has agreed to:

  • Drill through an identified Attic oil location in the Jingemia field ensuring the well can be used as either a well serving or for a new exploration discovery in the case of a Tammar (Kingia / High Cliff) success or as a development well for the existing Jingemia field;
  • Use its oil rig which is stored at RCMA Australia’s Jingemia site that can drill to below 3,000 metres. This arrangement is highly advantageous to both RCMA Australia and Refine Energy as it minimises mobilisation, demobilisation costs and reduces future drill costs.
  • Pay RCMA Australia a tolling fee for its equity oil processed through Jingemia facilities; and
  • Pay for the casing of wells to 500 metres, and log to test and determine the presence of hydrocarbons.

During the signing of the agreement RCMA Australia’s Director of Oil and Gas Chris Newport said,

We are pleased to close this deal with Refine Energy who bring with them significant competitive advantages to our operations. This agreement is a continuation of our program to realise the significant oil potential of the L14 license area in 2021.
The likelihood of success of these wells is high, with a large portfolio of attractive exploration targets with adjacent analogues. There are up to 4 exploration targets (at) each well located in a basin with an exploration success rate of 100% over the past 3 years.
The Jingemia processing facilities are now in a great position for significant 3rd party oil processing with up to four fields committed to process and sell their oil through these facilities.”

Refine Energy’s Managing Director, Adam Stepanoff added:
Refine is excited to join RCMA Australia in the L14 venture to tap into the oil potential of L14, especially with production facilities and rig in place and set to go.”

L14 Reserves and Resources (Jingemia reserves certified and 2P remaining recoverable reserves)
L14 Reserves and Resources Regional Field Map
Regional Field Map Dongara Sandstone Thickness Map

Dongara Sandstone Thickness Map

In 2020/21, the North Perth Basin will host several other significant drilling programs by Beach Energy, Mineral Resources Limited, Norwest Energy Ltd, Strike Energy Limited, and Talon Petroleum Limited, with firm drilling programs targeted at both oil and gas.

RMCA Australia has a significant portfolio of undrilled prospects. In 2020 and 2021, RCMA Australia will continue to work up programs for the drilling of these prospects in its own right and in conjunction with interested investors.

END
Media Contact
For more information please contact

Christopher Newport
Director Oil and Gas, RCMA Australia Pty Ltd
Contact No        : +61 467 456043
Email                 : chris.newport@rcma.com

About Jade Energy Holdings and RCMA Australia Pty Ltd

Jade Energy Holdings Pte Ltd (“Jade”) is the 100 percent shareholder of RCMA Australia Pty Ltd. Jade leverages market expertise and industry knowledge to develop and invest in energy related initiatives across the entire value chain. www.jade–holdings.com