Metgasco has signed an agreement with Senex Energy and Cooper Energy to farm-in to the Frey-1 Well Area within PEL93 in the South Australian Cooper Basin for a 20% working interest.

The decision to farm-in will depend on the outcome of drilling and testing.

The Frey prospect is said to have the potential for stacked pay in multiple formations and is a four-way dip-closed anticline, evident on all stratigraphic levels.

Imaged using 2D seismic, the closure amounts to 30m with an area of 9.5km² at the lowest closing contour.

The acquisition comprises oil fields within a short distance of the proposed well, resulting in improved economics and development of any discovered hydrocarbons at a lower cost.

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Under the agreement, Metgasco is required to pay 30% of the aggregate cost of $2m associated with the drilling of the Frey-1 well.

The company is also currently working with Senex to assess certain additional associated assets in the Cooper Basin.

"The acquisition comprises oil fields within a short distance of the proposed well, resulting in improved economics and development of any discovered hydrocarbons at a lower cost."

Dunns Earthmoving also reached a farm-in agreement with Cooper Energy to acquire 15% equity in the Frey-1 area.

The well, which has a prognosed total depth of 1,502m, was recently spudded and is expected to be complete in the first week of next month.

The completion of the agreement with Metgasco is subject to the receipt of regulatory approvals.

The PEL93 licence area is currently operated by Senex Energy with a 70% interest, with the remaining 30% held by Senex Energy.

Image: Upon closure of the agreement, Metgasco is expected to earn a 20% working interest in the Frey-1 well area in Cooper Basin. Photo: courtesy of Metgasco.