The company in exchange for the acquisition will pay 30% of the drilling costs that will be incurred on drilling the Waugh-1 exploration well.
The Waugh-1 exploration well will be drilled to a total depth of 700m up-dip from Dunnart-1 well and target about three million barrels of potential recoverable oil.
The Dunnart-1 well had earlier encountered oil shows in the Bookara Sandstone which were never tested.
The partners of the permit EP 437 will also examine the unconventional potential of the carbonaceous shale section in the Cattamarra Coal Measures.
Key Petroleum with 50%, Empire Oil & Gas with 35%, and Caracal Exploration with 15% interest in the permit will use DCA Rig 7 to drill the well, upon receiving all the approvals.
