SYS-CON MEDIA Authors: Adine Deford, Cynthia Dunlop, Harry Trott, Xenia von Wedel, Peter Silva

News Feed Item

Target Energy Announces Completion of Victory Sale and Operations Update

WEST PERTH, AUSTRALIA -- (Marketwired) -- 07/02/14 -- US-focused oil and gas producer Target Energy Limited ("Target") (OTCQX: TEXQY) (ASX: TEX) is pleased to provide the following corporate and operations update.

Sale of 10% Interest in Fairway Project to Victory Energy

  • Following on from the announcements dated 9 May and 16 June 2014, Target Energy, through its wholly owned subsidiary TELA Garwood LP ("TELA Garwood"), confirms the sale of a 10% working interest in its Fairway Project to Aurora Energy Partners ("Aurora"), a company associated with Victory Energy Corporation (OTCQX: VYEY).

  • A Purchase and Sale Agreement ("PSA") was signed by TELA Garwood and Aurora on 30 June 2014, with an effective date of 1 May 2014. In response to external delays in completing conveyancing of titles, the PSA splits the closing of the sale into two parts.

    • The first part ("First Closing") was completed on 30 June 2014, with Aurora making an immediate payment of A$2.7m (US$2.5m) to TELA Garwood and in return TELA Garwood assigning to Aurora a 10% working interest in its Darwin, BOA and Wagga Wagga production leases and in various other leases.

    • Subject to the completion of the outstanding conveyancing items, the Second Closing is scheduled for 31 July 2014, at which time Aurora will pay the outstanding balance of A$3.5m (US$3.3m) to TELA Garwood and in return TELA Garwood will complete the balance of the assignments.

    • The total purchase price is A$6.2m (US$5.8m) after a reduction of US$0.2m in accordance with conditions of the sale.

Operations

  • Drilling is now complete at Ballarat 185 #1, approximately 5 km east of the Sydney lease in Glasscock County, in which Target now has a 50% Working Interest following the First Closing. The well was drilled to a depth of 3,030m (9,942 ft), production casing run and the rig released on 1 July. Good oil shows were encountered while drilling and preliminary log analysis indicates the presence of potentially productive zones in the Ellenburger, Fusselman and Wolfberry sections.

  • A minimum three well back-to-back program at Fairway will take place in August and September, starting with BOA North #5, as the Company and its partners continue their strategy to complete a 10 well drilling campaign at Fairway in 2014.

  • An increase in demand for fracture stimulation crews and equipment in the Permian Basin has resulted in delays to the planned fracture stimulation programs for our BOA North #4, Wagga Wagga #2 and Homar #1 wells. Discussions are underway with a number of crews to address this, but it is expected that while Wagga Wagga #2 will be fracture stimulated within the week, it will be at least one month before we are able to complete the other wells.

Managing Director Laurence Roe commented: "We are very pleased to have closed the sale of a 10% Working Interest in our Fairway project. We worked closely with Aurora on the transaction and when it appeared that not all conveyancing could be completed in a timely manner, the parties agreed to split the closing into two stages which allows us to complete the legal work without holding up the full transaction.

"Drilling has now concluded at Ballarat 185 #1, with the well cased for production and the rig released. Wireline logs were encouraging and we expect to test the Ellenburger and Fusselman zones prior to making a decision about fracture stimulating the well.

"We are having a short break in drilling after Ballarat, but will recommence in early August with BOA North #5 followed by wells at our Bunbury and Taree leases."

Laurence Roe
Managing Director

NOTE: In accordance with ASX Listing Rules, any hydrocarbon reserves and/or drilling update information in this report has been reviewed and signed off by Mr. Laurence Roe, B Sc, Managing Director of Target Energy, who is a member of the Society of Exploration Geophysicists and has over 30 years' experience in the sector. He consents to that information in the form and context in which it appears. Note also that Target reports a thermal equivalent when combining gas and oil production, where 1BOE = 6 mcf.


----------------------------------------------------------------------------
                  Well Reporting Summary - Ballarat 185 #1
----------------------------------------------------------------------------
Name and Type of     Ballarat 185 #1, Oil Exploration Well
Well
----------------------------------------------------------------------------
Well Location        Glasscock County, Texas
----------------------------------------------------------------------------
Lease Description    S185, Bl 28, A-815 and A-A483, Waco & Northwestern
                     Survey
----------------------------------------------------------------------------
TEX Working Interest 50%
----------------------------------------------------------------------------
Report Date          7:00 pm 1/07/14 (Western Aust Standard Time) /
                     6:00 am 1/07/14 (USA Central Daylight Time)
----------------------------------------------------------------------------
Current Depth:       3,030m. (Total  All reported depths are measured below
                     Depth)          the Rotary Table (RT) on the rig floor.
----------------------------------------------------------------------------
Progress             Drill ahead to 1,114m (3,655 ft); run and cement
                     intermediate casing. Drill ahead to Total Depth at
                     3,030m (9,244 ft). Run wireline logs. Run 5 1/2 inch
                     production casing. Rig released 1 July 2014.
----------------------------------------------------------------------------

CONTACT INFORMATION:

USA
Bradley Holmes
Target Investor Relations (Houston)
+1 713 304 6962 cell
+1 713 654 4009 direct

Laurence Roe
Target Energy
+1 713 275 9800 direct

Australia
Ross Dinsdale
Business Development Manager (Perth)
+61 429 702 970 cell
+61 8 9476 9000 direct

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"We help companies that are using a lot of Software as a Service. We help companies manage and gain visibility into what people are using inside the company and decide to secure them or use standards to lock down or to embrace the adoption of SaaS inside the company," explained Scott Kriz, Co-founder and CEO of Bitium, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
15th Cloud Expo, which took place Nov. 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, expanded the conference content of @ThingsExpo, Big Data Expo, and DevOps Summit to include two developer events. IBM held a Bluemix Developer Playground on November 5 and ElasticBox held a Hackathon on November 6. Both events took place on the expo floor. The Bluemix Developer Playground, for developers of all levels, highlighted the ease of use of Bluemix, its services and functionalit...
Some developers believe that monitoring is a function of the operations team. Some operations teams firmly believe that monitoring the systems they maintain is sufficient to run the business successfully. Most of them are wrong. The complexity of today's applications have gone far and beyond the capabilities of "traditional" system-level monitoring tools and approaches and requires much broader knowledge of business and applications as a whole. The goal of DevOps is to connect all aspects of app...
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, discussed how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP HANA...
Want to enable self-service provisioning of application environments in minutes that mirror production? Can you automatically provide rich data with code-level detail back to the developers when issues occur in production? In his session at DevOps Summit, David Tesar, Microsoft Technical Evangelist on Microsoft Azure and DevOps, will discuss how to accomplish this and more utilizing technologies such as Microsoft Azure, Visual Studio online, and Application Insights in this demo-heavy session.
When an enterprise builds a hybrid IaaS cloud connecting its data center to one or more public clouds, security is often a major topic along with the other challenges involved. Security is closely intertwined with the networking choices made for the hybrid cloud. Traditional networking approaches for building a hybrid cloud try to kludge together the enterprise infrastructure with the public cloud. Consequently this approach requires risky, deep "surgery" including changes to firewalls, subnets...
DevOps is all about agility. However, you don't want to be on a high-speed bus to nowhere. The right DevOps approach controls velocity with a tight feedback loop that not only consists of operational data but also incorporates business context. With a business context in the decision making, the right business priorities are incorporated, which results in a higher value creation. In his session at DevOps Summit, Todd Rader, Solutions Architect at AppDynamics, discussed key monitoring techniques...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water,...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, a...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happe...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!