(MENAFN- ProactiveInvestors - Australia) Basins (ASX: OBL) expects to spud its East Blina-1 exploration well in the onshore Canning Basin on or before 16 October that targets up to 3.1 million barrels of in place oil.
This is subject to finalisation of the Environment Plan which had been impacted and delayed by newly introduced Western Australian environment legislation that requires public listing of mud and additives properties.
Oil Basins is not seeking approval from the supplier of the drilling mud to release information on their proprietary commercial formulae.
Alternatively it will substitute all synthethic mud additives and modern polymer mud with natural muds and additives and re-lodge the Drilling Application and finalise the Environment Plan.
The company is required to drill the well before 31 October 2012 under the farm-in agreement with Green Rock Energy (ASX: GRK).
Green Rock has the option to take a 5% interest in the Backreef Area by paying an additional A$625,000 or a 20% stake by paying A$2.5 million for future operations.
This will be applied to the cost of drilling East Blina-1.
Oil Basins will retain 80% of the Backreef Area and 100% of any benefits from a potential Buru Energy (ASX: BRU) back-in.
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