BP is getting an extension from Cue Energy Resources that will allow the UK supermajor more time to consider acquiring 42.5% stake in the permit in which the Ironbark prospect is thought to straddle on Australia’s North West Shelf.

Cue Energy has agreed to extend the 42.5% equity option over exploration permit WA-359-P granted to BP Developments Australia Pty (BP) last year in October. The extension will be until 25 October 2017.

BP is the operator with 80% stake in the adjacent permit, WA-409-B.

Ironbark is less than 50km from the North Rankin platform (North West Shelf LNG) and in close proximity to Pluto and Wheatstone LNG infrastructure, that Cue says will provide cost effective commercialization options.

Cue says it is seeking to secure a partner or partners to join the company and BP in WA-359-P to drill an exploration well in 2018 to test the Ironbark prospect.

“A number of International companies are currently engaged in the WA-359-P data room process and the extension of time will enable the results of 3D seismic reprocessing currently underway to be incorporated into their analyses,” says Cue Energy.

The company says that if BP exercises the option over WA-359-P, 50% of the Ironbark well cost will be funded.

Ironbark is a giant Mungaroo Formation prospect that is mapped with an area of up to 400sq km with a best technical estimate of 15 Tcf of prospective recoverable gas resource1 based on an internal technical assessment performed by Cue.

Wood Mackenzie estimates that the North West Shelf LNG plant and infrastructure will have spare capacity from 2021.

Source: www.oedigital.com