08 November 2008

Flamingo Trough, JPDA between Timor-Leste and Australia

Oilex Ltd Joint Petroleum Development Area JPDA 06-103: Flamingo Trough, Joint Petroleum Development Area (“JPDA”) between Timor-Leste and Australia

In late August, Oilex as Operator for the Joint Venture, was advised by the Timor Sea Designated Authority, the governing body of the JPDA, that the bidding group consisting of GSPC (25%), VIL (25%), BPCL (25%) and Oilex (25%) was the successful bidder for application block JPDA 06-103. The block was offered in a competitive bidding round that closed on 26 May 2006. The Production Sharing Contract (“PSC”) was signed at a ceremony in Dili, Timor-Leste on 16 November 2006. The effective date of the PSC is 15 January 2007.

The Timor Sea Designated Authority was created on 2 April 2003, pursuant to the Timor Sea Treaty between the Governments of Timor-Leste and Australia. The role of the TSDA is to administer the Joint Petroleum Development Area (JPDA) on behalf of the Governments of Timor-Leste and Australia.

JPDA 06-103 is located to the east of the Laminaria, Corallina, Kakatua, Kuda Tasi and Elang discoveries/oil and gas fields and to the north of the Bayu-Undan gas condensate field in the northern Timor Sea. The JV has acquired an extensive seismic data base and is planning to acquire a new seismic survey later in 2007. Drilling is anticipated to start in mid-2008.

Latest Activity
The Maura 3D seismic survey, the first phase of offshore operations in Block JPDA 06–103, was completed successfully by the Geowave Champion seismic vessel in August 2008. The survey covered an area of 2,082 km2. Data from this survey will be combined with existing 3D seismic surveys to provide 3D seismic coverage over more than 90% of the area of the Block. Processing of the data is expected to be concluded about the end of 2008 and the interpretation of the data over the entire block is anticipated to be completed by about end of March 2009. Locations for exploration wells will then be selected for drilling starting about mid-year 2009.

To that end, on 13 June 2008 Oilex issued a conditional Notice of Award jointly with Nexus to Sedco Forex International for the supply of the Transocean Legend semi submersible drilling rig. The rig would drill development wells for Nexus before 2 wells for Oilex, estimated to start in about mid-year 2009. Oilex has accordingly made application, on behalf of the JPDA Block 06-103 Joint Venture, seeking an extension of time under the PSC to enable its 2 wells to be drilled by January 2010 rather than by January 2009. The application is under review by the relevant governmental authorities.


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