Raisama (ASX: RAI) will participate in the anticipated L20/50 onshore drilling campaign in Thailand with Sun Resources (ASX: SUR) and Carnavon Petroleum (ASX: CVN) via its proposed subsidiary company, Peak Oil and Gas, with exploration set to commence on Monday 17 January.
In consideration for past costs of acquiring the seismic data and development of the drilling prospects, Peak will carry 50% of the drilling expenses of the first well in the program, capped at US$1.3 million, to earn a 7.5% equity interest in the L20/50 concession.
Most importantly, any discovery at L20/50 can be quickly commercialised with crude oil transported by truck to one of Thailand’s nearby oil refineries for sale.
Following completion of the first well, Peak will be required to contribute only its 7.5%
The first well site, Tapao Kaew, was essentially completed in late December, however operations will not commence until the other well sites have progressed significantly enough to be able to drill up to 3 wells back to back.
The second well site, Krai Thong, is nearing completion and will be ready by the end of January, well ahead of earliest release of rig from Tapao Kaew.
The third well site, Chalawan, will be ready by mid to late February and a decision on whether to drill this third well will depend on results from the first two wells.
Sun Resources will maintain a 42.5% interest in L20/50 following farm-out to Peak, with the upcoming multi-well drilling program to test for up to 90 million barrels of oil, with the speculative potential based on gross recoverable oil.
Each well will take approximately two‐three weeks to drill and complete, with each well testing multiple reservoir horizons where the potential for stacked oil pools exists.
Carnarvon Petroleum is the operator at L20/50 with a 50% stake.