The suspension and extension will allow time for detailed well planning using newly available data and preparing for drilling the Ironbark-1 well, targeted for 2019.
The WA-359-P minimum work requirements, including the variation to Permit Year 4 to include a Detailed PSDM Pore Pressure Study, which has recently been completed, are shown in the table below.
Ironbark is a giant Mungaroo Formation prospect that is mapped with an area of up to 400km2and a best technical estimate of 15 trillion cubic feet (tcf) of prospective recoverable gas resource(1) based on an internal assessment performed by Cue.
The Ironbark prospect is less than 50km from the North Rankin platform (North West Shelf LNG) and in close proximity to Pluto and Wheatstone LNG infrastructure, providing cost effective commercialisation options.
BP and Beach Energy Agreements
Cue currently holds 100% equity in WA-359-P and has executed agreements with BP(2) and Beach Energy(3) which provide them opportunities to acquire 42.5% and 21% equity respectively in the permit. While BP evaluates exercising its 42.5% Option, which is a condition to the Beach Agreement, Cue continues to consider options for the remainder of the funding of the Ironbark-1 well, representing 25% of the estimated well cost if BP exercises its option and the Beach agreement completes.
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