New Farm-Out Agreement Reached for Perth Basin's West Erregulla Field

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Researched by Industrial Info Resources Australia (Perth, Australia)--Until now, progress has been slow for the development of the West Erregulla tight-gas field in Western Australia, but the pace is set to increase with the recent signing of a farm-out agreement and an influx of new capital.

In February 2014, Warrego announced that it had signed a farm-out agreement with exploration and production businesses Dyas BV (Utrecht, The Netherlands) and Mazarine Energy (The Hague, The Netherlands) for the appraisal and development of the West Erregulla tight-gas field. Under the terms of the agreement, Warrego Energy will retain operatorship until after the completion of the appraisal program, at which time Mazarine Energy will take over.

The West Erregulla tight gas field was discovered in 1990. It is located in Western Australia's North Perth Basin, approximately 30 miles (50 kilometers) southeast of Dongara, and approximately 12 miles (20 kilometers) from both the Dampier-Bunbury and Parmelia gas pipelines. Since 2008, Warrego Energy (Aberdeen, Scotland) has been the sole holder of the lease for the gas field, which is estimated to contain 185 billion cubic feet of gas and a 3 trillion cubic feet unconventional upside potential.

Mararine Energy has acquired a 50% equity share of the project, with Dyas BV acquiring 30% and Warrego Energy retaining 20%.

Warrego Energy is an independent development and production company founded in 2009. It has a small office in Perth, Western Australia.

Dyas is a subsidiary of SHV Holdings N.V., which is active in the trade and distribution of liquefied petroleum gas (LPG), industrial services, cash-and-carry wholesale, private equity, heavy lifting and transport.

Mazarine Energy is a subsurface-driven private oil and gas exploration and production company, focused on early-stage exploration and field development.

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