Following execution of term sheet on L15, as announced on 31 December 2018, a wholly owned subsidiary of Doriemus has now executed the Farmout Agreement with a wholly owned subsidiary of Rey Resources Limited.
The Farmout Agreement confirms the terms on which the Doriemus group will, subject to fulfilling certain earning obligations, be assigned a 50% interest in the 163 km2 WA onshore block L15 as well as be appointed the operator of the field pursuant to an agreed form Joint Operating Agreement which forms part of the Farmout Agreement and will become operational in conjunction with the assignment of the 50% interest.
Doriemus now plans to finalise the permits required with the Western Australian Government with the aim of recommencing oil production from Kora West.
L15 has an estimated 380 000 bbls of 2P reserves.
L15 is located only 20 km east of Derby in Western Australia.
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David Lenigas, Doriemus’ Executive Chairman, commented;
“The board are excited to move from the Term Sheet stage of this Western Australian oil deal to the signing of the formal Farmout Agreement, which comprises an agreed form joint operating agreement. We still have some work to do before we look at bringing this oilfield back in to production. Current plans are to pull the existing down hole equipment, work to isolate unnecessary water inflows, install a higher capacity down hole pump and rebuild existing surface infrastructure. Work on site will be limited until after the wet season, however we plan to push on as soon as possible in our attempt to resume oil production from West Kora.”
“We have also completed the due diligence process on the larger EP487 proposed farmin block, to the south of West Kora L15 block, and the parties aim to provide a further update on the status of that farmin deal shortly.”