Finder Enters Farm-Out Agreement with Mimi
Finder No. 4, a wholly owned subsidiary of Finder Exploration, has entered into a farm-out agreement which provides for a wholly owned subsidiary of Japan Australia LNG (MIMI) Pty Ltd ("Mimi") to earn a 20% interest in Exploration Permit WA-450-P (the Permit). The Permit is located in the Northern Carnarvon Basin, directly south of the Gorgon and Clio major gas fields and only twelve kilometers from the recent Zola discovery.
The farm-out agreement provides for Mimi to earn its interest in the Permit through:
- an upfront cash payment; and
- potential funding of an additional work program on the Permit following successful drilling of the Olympus gas exploration well.
Finder's Managing Director, Mr Jan Ostby commented, "Following our initial farm-out to Apache in August 2010 and the recent nearby Zola discovery we received significant interest in the Permit and are delighted to be able to farm-out a further participating interest to a recognized gas player in Mimi ahead of the drilling of the Olympus exploration well in the second half of 2012. This transaction enables Finder to generate cash to grow our business, whilst maintaining a participating interest in the drilling of the Olympus prospect and providing the possibility to be free carried through additional work program."
The participating interests in the Permit following completion of the transaction will be as follows:
- Apache Northwest Pty Ltd (Operator) 75%
- Japan Australia LNG (MIMI) Pty Ltd Subsidiary 20%
- Finder Exploration Pty Ltd 5%
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