SANTOS and Total will have another month to decide whether or not to acquire a 40% interest each in the offshore Beehive prospect in WA-488-P off the coast of Western Australia.
Melbana Energy, which has a 100% stake in the license currently, has granted Santos and Total until November 4 to elect to acquire their interests.
In a statement today, Melbana noted that the two much larger operators had completed technical assessments of the Beehive prospect.
"The additional time requested is needed by the parties to finalise their commercial analysis and seek internal approvals," Melbana said.
Beehive has been assessed by independent experts McDaniel & Associates as holding a best estimate 388 million barrels of oil equivalent; however future exploration is needed to determine the existence of a significant quantity of hydrocarbons.
Should Santos and Total take a combined 80% stake in the permit, a well will be drilled in the second half of next year at an estimated cost of US$40 million - US$60 million.
Source: Energy News Bulletin
Read more here