Doriemus pulls out from L15 farmout agreement with Rey Resources

first_imgThe farmout deal was to see Doriemus assigned a stake of 50% and operatorship of the onshore Western Australia block L15 The farmout deal was announced in March 2019. (Credit: Pixabay/Terry McGraw) UK-based oil and gas firm Doriemus is set to pull out from a farmout agreement made with Rey Resources pertaining to Production Licence L15 in Western Australia.The farmout deal was announced in March 2019 with an aim to bring back the West Kora 1 well, contained in the licence, into economic production. The deal was to see Doriemus assigned a stake of 50% and operatorship of the L15 block, subject to receipt of government approvals.However, its notice of withdrawal sent to the Australia-based Rey Resources ceases its right to earn an interest in the L15 permit and also results in the termination of the agreement.Rey Resources said that it will continue to be the 100% holder of the permit and will look for new partners for the development of L15.Spanning 163km2, the onshore block, located 20km east of Derby, has an estimated 380,000 barrels of 2P Reserves.L15, which was granted in 2010 to Rey Resources, contains the West Kora oilfield whose last production was in 1996.Doriemus to focus on closing a deal signed with OilexDoriemus said that it plans to focus on wrapping up a proposed acquisition of certain oil and gas assets in the onshore Cooper-Eromanga Basin in South Australia from Oilex.As per a binding heads of agreement (HOA) signed last month, the UK firm will acquire 100% of CoEra, a fully-owned subsidiary of Oilex to gain 79.33% direct interest in two petroleum exploration licences PEL 112 and PEL 444, and the right to acquire 27 petroleum retention licences (Northern Fairway PRLs) from Senex.Doriemus also revealed plans to continue assessing the status of each of its remaining assets in the UK and wherever possible, would look to potentially rationalise them for strengthening its balance sheet.The company’s operations are focused on the Weald Basin in Southern England, where it has interests in the Horse Hill and Brockham licences and the Isle of Wight. It also has farm-in interests in the northern Canning Basin in Western Australia.last_img read more