Eni Farms-In to Timor Sea Discoveries
|Tuesday, May 17, 2011
Eni has signed an agreement with MEO Australia Limited to farm-in to the Heron and Blackwood gas discoveries in the NT/P68 permit in the Timor Sea, northern Australia.
Under the agreement, Eni will earn a 50% operating interest in the Heron gas discovery by funding the drilling of two wells in the Heron Area. Eni may withdraw from the agreement after the first well has been drilled.
Eni also has the option to earn a 50% interest in the Blackwood gas discovery by acquiring a minimum of 123,553 acres (500 square kilometers) of 3D seismic and by drilling one well in the Blackwood area. The company also has a further option to acquire an additional 25% interest in the discoveries by funding the work program required to reach a final investment decision (FID) in either Heron or Blackwood, or both. Once completed, Eni would make a one off bonus payment to MEO.
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