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  • Metgasco has identified significant oil prospects in the Cervantes and Western Bush regions of WA
  • The company entered a farm-in agreement with RMCA Australia on Monday, securing the rights to drill an exploration well in the western flank of the North Perth Basin
  • The new partnership allows for any oil discovered during the exploration to be quickly commercialised with a crude oil processing and purchasing agreement

Metgasco has identified significant oil prospects in the Cervantes and Western Bush regions of WA.

The company entered a farm-in agreement with RMCA Australia (a subsidiary of Jade Energy) on Monday, securing the rights to drill an exploration well in the western flank of the North Perth Basin. The partnership also gives Metgasco the opportunity to drill a successive additional well in the area by December 2020.

Through covering all exploration expenses, Metgasco’s drilling commitment will earn the company 60 per cent interest in any discovery at the wells they create.

The new partnership allows for any oil discovered during the exploration to be quickly commercialised with a crude oil processing and purchasing agreement. Both Jade and Metgasco have expressed interest in introducing another investor to the consortium when the first well is drilled.

Over the last few months, Metgasco has begun reviewing 3D seismic data to get a better sense of the commodities available at both the Cervantes and Western Bush prospects. Interim results have indicated that both prospects are “high graded prospects” for drilling and exploration.

The findings come as no surprise for the company, who are strategically positioned to explore three kilometres from Jade Energy’s Jingemia oil production field. Discovered in 2002, the Jingemia field covers just under 40 square kilometres of terrain and has produced 4.6 million barrels of oil to date.

“Metgasco is pleased to have finalised this agreement with RCMA to rapidly progress well and environmental project plans, secure an additional farm-in partner, and, subject to Metgasco’s election, drill a well on the Western Flank in 2020,” said Metgasco CEO Ken Aitken.

“I have always believed that the Perth Basin has a lot more sizeable oil and gas discoveries to be made and this entry deal into the underexplored L14 licence offers significant exploration upside with rapid commercialisation potential,” Ken continued.

The Perth Basin has been described as one of Australia’s best onshore basins for oil and gas exploration following large discoveries by AWE and Strike Energy in recent years.

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