The following article appeared on the oilbarrel news and while...

The following article appeared on the oilbarrel news and while much of it is known information there are a few extra bits of comment that are worth noting.

A liitle bit behind on the PPP farmin .....or is it ?
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December 02, 2009

ASX-listed Oilex Ltd Is Forging Ahead With Its Highly Prospective Drilling Venture In The Timor Sea

ASX listed Junior Oilex has a wide geographical spread of interests with ventures in India, Indonesia and Oman. While some of these assets have performed indifferently during 2009 a project closer to home in the Timor Sea, which seemed the least advanced of the company’s schemes a few months ago, is now being fast tracked and could mean a huge step up for the group if it is successful
Oilex is involved in a joint venture in the Timor Sea contract area JPDA 06-103, which is highly prospective. Six months ago it looked as if it would remain just that, a good prospect. A rig had been found but the contractor Transocean unilaterally terminated the contract. Now, however, Oilex has farmed out some of its interest. Japan Energy E & P has taken 15 per cent of Oilex’s stake, leaving Oilex with 10 per cent.

For this, Japan Energy will pick up Oilex’s back costs and carry Oilex as operator through the first two wells. The cost of each well is put at around US$30 million. The two targets are the Lore prospect with mean prospective oil reserves of 195 million barrels (100 per cent basis) and the Lolotoe prospect which is looking at mean average reserves of 90 million, making 285 million barrels in all. This indicates a potential net resource of 28.5 million barrels to Oilex if both wells come good. Oilex managing director Bruce McCarthy told oilbarrel.com he reckoned there was a one in five or one in six drilling Chance of Success (CoS).

Drilling has already started. The Lore-1 well was spudded at 13.15 (WST) on November 20. The latest drilling report was on November 25 and said the “Songa Mercur” rig was drilling ahead in 17½ inch hole at 2,189 metres after the setting of 30” surface casing at 428 metres. The planned total depth of the well is approximately 3,670 metres and is anticipated to be completed by late December 2009. After drilling the Lore-1 well the rig will drill the Lolotoe prospect. Oilex’s next update on the Lore-1 well is scheduled to be released tomorrow December 3 and thereafter on a weekly basis.

As we write the other partners in the joint venture apart from Japan Energy E& P with its 15 per cent (JV) are Global Energy Limited (Videcon) ( 25 per cent), GSPC ( JPDA) (25 per cent), and Bharat PetroResources JPDA Pty (25 per cent). These figures could change since it seems Pan Pacific Petroleum (JPDA) has recently signed conditional farm-in deals with Global Energy, Bharat PetroResources and GSPC to acquire a 15 per cent interest in JPDA 06-103.
(article continues but that is the section of interest to PPP shareholders)


Hmmmm ...so a 1 in 5 or a 1 in 6 COS !!!!!!!!