WHL Energy Starts Farm Out Process for Otway Basin Permit

Australian oil and gas company WHL Energy Limited has started the formal farm-out process has on its VIC/P67 oil and gas permit, which contains the La Bella gas and condensate asset, in the offshore Otway Basin off the Victorian coast.

The decision to move to a formal farm-out process for VIC/P67 follows receipt of strong industry interest to participate in the future development of the permit, the company said. The farm-out process is expected to run over the next 2-3 months.

“La Bella’s known gas and condensate reserves, their location in close proximity to key infrastructure and rapidly growing gas markets, and the exploration upside  within the permit,makes VIC/P67 a very attractive asset for any company that wants to be part of a relatively easy to develop, ideally located, high value project,” WHL Energy Managing Director Steve Noske said.

Noske confirmed that a decision on what form a farm-out agreement may take and how much equity WHL Energy may retain will be finalised during the farm-out negotiation process.

Located approximately 200 km WSW of Melbourne, VIC/P67 benefits from its proximity to existing development infrastructure, including the  Santos operated Casino development, the Origin operated Otway gas project, the BHPB operated Minerva development and TRU Energy’s Iona gas plant.