PROPERTY ACQUISITION / Gulf Canada Resources Acquires Australian Properties
GULF CANADA ACQUIRES PRODUCTION AND STRATEGIC FACILITIES IN AUSTRALIA
DENVER, June 10 /CNW/ - Gulf Canada Resources Limited announced today
that the Company has entered into a Memorandum of Understanding (MOU) to
purchase BHP Petroleum's wholly owned subsidiary BHP Petroleum (Cartier) Pty
Ltd. Key assets included in the company are a 50 per cent interest in the
Jabiru and Challis production licences (AC/L1, 2 & 3), and a 43 per cent
interest in the Skua production licence (AC/L4). These fields are located in
the Timor Sea off the north coast of Western Australia. BHP Petroleum is
currently the operator of the licences. The MOU also includes an option to
farm-in to additional acreage in the region, allowing Gulf the opportunity to
fully evaluate this additional acreage prior to exercising its option. This
acquisition is part of Gulf's previously announced initiative to focus its
international program on core areas, and the transaction will be funded from
available cash.
The acquired properties are expected to produce 6,000 barrels of oil per
day net to Gulf for the remainder of 1998. Based on existing operating
conditions, the current operator estimates remaining reserves to be
approximately five million barrels. Gulf plans to enhance economically
recoverable reserves by introducing operating efficiencies to extend field
life. Included as a component of the producing interests are the Jabiru and
Challis floating production storage and offloading (FPSO) vessels. The Jabiru
field and FPSO vessel are located 13 kilometres from the Tenacious oil
discovery that flowed 7,667 barrels of oil per day as announced last July.
Gulf holds a 25 per cent interest in the Tenacious well. Significantly, the
Jabiru production facilities have sufficient capacity to process oil from the
Tenacious field, which should expedite field development.
''This is a strategic transaction for Gulf and completes a major step in
our Australian business plan,'' said Richard Auchinleck, President and Chief
Executive Officer of Gulf Canada. ''We will add immediate production and cash
flow, build on our concentrated position in this prolific Australian region,
and gain control over infrastructure to enable fast-track development of the
Tenacious field.''
|
