New Standard Energy, ConocoPhillips to develop Australian project

New Standard Energy has signed a binding farm-out agreement with ConocoPhillips to explore and evaluate the shale gas potential of the Goldwyer project in Canning Basin, Western Australia.

Under the terms of the agreement, ConocoPhillips will earn and retain a 75% interest in the Goldwyer project by providing $109.5m over four phases.

Under the first phase, ConocoPhillips will fund 100% of the costs to drill, log, core and suspend three vertical wells, complete detailed core lab analysis of the cores from each well and undertake formation evaluation tests.

On completion of the first phase of drilling programme, ConocoPhillips will have the right to assume operatorship of the Goldwyer project at its election.

New Standard Energy managing director Sam Willis said that ConocoPhillips will inject invaluable and world-class technical knowledge and resources to the Goldwyer project through a technical services agreement.