Explorer gets green light to acquire assets

exploJUST days after securing shareholder support, New Standard Energy has acquired new assets in the Eagle Ford Shale play in Texas.
The company has also completed a farm-in agreement with Ambassador Oil and Gas for a 52.5 per cent operated interest in the PEL 570 permit in South Australia’s Cooper Basin.
More than 95 per cent of shareholder votes approved the move to acquire the producing and prospective acreage in Eagle Ford, and the Cooper Basin, which New Standard described as a necessary step to transform it into a diverse oil and gas explorer, developer and producer.
The US acquisition was bought from Magnum Hunter Resources and contains five existing producing wells and the opportunity for additional exploration and development.
“Making the jump from an explorer to a producer and developer is a big one and I am pleased with the support for the company’s strategy,” New Standard chairman Arthur Dixon said.
Drilling has now begun at the company’s 5182 acre Atascosa project in Texas with a plan to drill two wells on the same pad in the next two months. The wells are expected to be in production by May this year.
A reserves study by Cawley, Gillespie and Associates estimated 12.3 million barrels of oil equivalent of 3P reserves.
The first well, Peeler Ranch-5H, was spudded at the end of January and will reach a total depth of 2950m and length of 1735m.
“I am delighted that we have been able to progress operations alongside Magnum Hunter to a point where we are able to drill our first well only a week after receiving overwhelming support from our shareholders to purchase the Atascosa project,” New Standard managing director Phil Thick said.
The PEL 570 project is about 75km north of the Moomba gas processing facility in South Australia and is 2400 square kilometres.
The permit has an estimated CSG potential of 6.4 trillion cubic feet and 1.5tcf of shale gas.
New Standard also has assets in the onshore Canning Basin and offshore Carnarvon Basin, both in WA.
“This is a significant opportunity and the company is focused on developing the Atascosa Project; working with Ambassador Oil and Gas to progress our Cooper Basin Project to take advantage of the domestic and export market
opportunity in the eastern states of Australia; and opening up the onshore Canning and Carnarvon Basins in Western Australia,” Mr Thick said.