Australian Melbana gets Extension for Beehive Prospect
Australia-listed junior Melbana has been granted a permit by the regulator for a six month extension for work on the Beehive prospect – which French major Total and Australia’s Santos have farm-in options for, the company said February 27.
The approval from the National Offshore Petroleum Titles Administrator extends the work program by six months to September 21 this year.
“We are pleased to receive this extension to the permit conditions from the regulator. It allows sufficient time for the WA-488-P stakeholders to obtain the pre-requisite regulatory approvals to enable the Beehive 3d seismic survey to proceed mid-year as targeted,” Melbana’s CEO Robert Zammit said.
The Beehive prospective is in the Bonaparte Basin offshore Western Australia and Melbana says it is potentially the largest undrilled hydrocarbon prospect in the country.
Total and Santos in December agreed to fully fund the cost of a 3D seismic survey over the prospect in consideration for which, they are granted an option – exerciseable together or individually – to acquire a direct 80% participating interest in the permit.
“If the option is exercised, Total and/or Santos will fully fund the costs of all activities until completion of the first well in the WA-488-P permit,” Melbana says. In the event of a commercial discovery, Melbana will repay carried funding from its share of cash flow from the Beehive field, it said. It will have no re-payment obligations if there is no commercial discovery and development of the permit.
At the time of the deal with Melbana, Santos executive vice president for exploration and appraisal Bill Ovenden said the transaction puts the company in a good position to boost its strategic acreage position in offshore Northern Australia. “The Beehive prospect is a large undrilled structure with great hydrocarbon-bearing potential and, being immediately adjacent to the Blacktip facilities and within reach of Ichthys infrastructure, a commercial discovery could be quickly delivered to market,” he said.
“This option adds to our diverse portfolio of core production, appraisal and exploration assets in Northern Australia, including our foundation interest in Darwin LNG and the Barossa field which is the leading candidate to backfill Darwin LNG as Bayu-Undan comes off plateau in the next few years,” he added.