TITAN Energy and its North Perth basin operator AWE have received conditional approval for its Drover-01 exploration well environment plan.
Receiving government environment approval paves the way for AWE to spud the Drover-01 well in mid-June as initially planned.
The drilling program is estimated to take about 30 days, after which the well will be evaluated before progressing with the stimulation phase.
Under AWE’s unconventional drilling program, the company will turn to the appraisal/development well at Senecio-3 immediately after Drover-01.
Exploration permit 455 in the North Perth basin totals 110,000 acres of petroleum tenure, with Titan holding an 18.5 per cent interest.
Titan chairman Darren Levy said the start of brining would bring the company closer to its potential involvement with a world class asset.
The company cited REA-Deloitte’s independent assessment of the Prospective Resources in EP455 which have been calculated to exceed more than 2.3 trillion cubic feet of natural gas.
In separate news, AWE reported a strong financial and operational performance for the March quarter, announcing sales revenue of $93 million, representing an 8% jump on the previous quarter.
While the company posted 9% quarter-on-quarter drop in production to 1.3 million barrels of oil equivalent, AWE said production was tracking towards the upper end of our full year guidance of 5-5.5mmboe.
The company has a net cash position of between $72 million with undrawn debt facilities of $300 million.