Dragon Oil (LON:DGO) revealed today that drilling of the Hammamet West-3 exploration well, off the coast of Tunisia, may begin by the end of this year.
The firm's partner Cooper Energy, on behalf of the Bargou joint venture, has struck an agreement with Grup Servicii Petroliere SA (GSP) to secure the jack-up rig "GPS Jupiter".
Drilling is set to begin between December this year and March 2013 depending on when the rig is free from previous commitments.
Dragon CEO Dr Abdul Jaleel Al Khalifa said: "We are pleased with the progress that Cooper Energy, our partner in the Bargou Exploration Permit, has made in securing a rig to drill the Hammamet West-3 well in the Hammamet West Oil Field.
"Dragon Oil is contributing towards the cost of drilling this exploration well under the farm-in conditions and is sharing our expertise and knowledge of working with complex and challenging reservoirs.
"We look forward to seeing the results of drilling in 2013."
Dragon Oil has 55 per cent of the Bargou joint venture, Cooper Energy has 30 per cent and Jacka Resources(ASX:JKA) holds 15 per cent.
In any development phase, Dragon Oil will assume operatorship.
Dragon Oil will pay 75 per cent of the cost to drill the well in the Hammamet West oil field, up to a cost cap of US$26.6 million. If the well cost exceeds US$26.6 million, costs in excess of this amount will be shared among the joint venture partners pro rata to their participating interest.