Cooper Energy Limited is pleased to announce its wholly owned subsidiary, C. E. Tunisia Bargou Ltd has signed a Farm-in Agreement with Dragon Oil Ltd., a wholly owned subsidiary of Dragon Oil plc, under which Dragon Oil will acquire a 55% working interest in the highly prospective Bargou Permit offshore Tunisia, North Africa.
Dragon Oil is a leading international oil and gas exploration, development and production company quoted on the London and Irish Stock Exchanges with a market capitalisation of approximately £2.5 Billion (approximately AUD$4.2 Billion), reserves of 639 million barrels of oil and condensate and 1.6 trillion cubic feet of gas. Dragon Oil brings substantial offshore expertise and capability to the appraisal and development of the Hammamet West Oil Field within the Bargou Permit (Bargou), in the gulf of Hammamet, a proven and prospective oil basin with numerous discoveries and world class producing assets.
Laurie Shervington, Chairman, Cooper Energy, said: “Cooper Energy is delighted to welcome a strategic partner with the technical and operational experience and capability of Dragon Oil into the Bargou Permit and we look forward to a successful and productive Joint Venture.” “The Farm-in represents a critical step in the appraisal and development of the Hammamet West Oil Field. Dragon Oil’s experience in developing the Cheleken Contract Area fields offshore Turkmenistan will be invaluable,” he added.
“We are confident Hammamet West-3 has the potential to unlock significant shareholder value. Dragon Oil will be of great technical assistance in assessing this and other prospects in the Bargou Permit. We are looking forward to testing the production potential of the Abiod Formation by drilling a horizontal well using modern drilling techniques thereby increasing the potential for the reservoir to flow at commercial rates,” Mr Shervington said. “We will work with Dragon Oil and Jacka Resources to lock in a well design with a view to drilling the well in 2012.”
Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, Dragon Oil plc, commented. “Dragon Oil is pleased to work with Cooper Energy and Jacka Resources to drill the Hammamet West-3 well to test the development potential of the Abiod Formation in the Bargou Permit. We believe our experience offshore Turkmenistan with complex and challenging reservoirs will be useful in better understanding, appraising and developing the Hammamet West Oil Field.
In addition to drilling the Hammamet West-3 well, the Permit also contains a number of other prospects that we expect to evaluate further with our new partners. We look forward to participating in this Permit and entering Tunisia’s oil and gas sector.”