The separate agreements entered into with ARC and Wandoo are:
Arc Energy - Purchase Agreement
Voyager will make a cash payment to ARC of $3.23 million in consideration for purchase by Voyager of a 4.73% interest in EP 413 (Jingemia), and 10% interests in exploration permits TP/15 and EP 368. Voyager and ARC have agreed to formalize the purchase via a sale and purchase agreement based on industry standard terms and conditions which is to be in place within 21 days.
Wandoo Petroleum - Sale and Purchase Agreement and Farmin-in Agreements
Voyager will make a cash payment to Wandoo for the 1.0% in WA-286-P that has been reduced by an amount representing a portion of past exploration costs incurred by Voyager in WA-325-P and WA-327-P. The cash payment will approximate $1.2 million. Voyager will also pay Wandoo $240,000 if, within 6 months of commencement of full production reserves from Cliff Head are calculated to exceed 28 million barrels.
Wandoo will contribute $450,000 on Voyager's behalf towards the proposed WA-325-P and WA-327-P, 2004 exploration program and will be assigned 5.0% interests in each license.
Wandoo will take assignment from Voyager of 5.0% in adjacent license WA-226-P on the same terms as Voyager's recent farmin to the Dana Petroleum interests.
At completion of the transactions, which are subject to completion of the capital raising and the usual joint venture and regulatory approvals, Voyager's Perth Basin portfolio of 8 licenses covering over 32,000 km 2 will be as follows:
The total consideration Voyager will outlay for the above purchases is $4.43 million.
Commenting on the transactions, Voyager's Managing Director John Begg said:
"These transactions represent a significant milestone in the growth of Voyager Energy.
Our Perth Basin acreage covers a vast area with many undrilled structures identified. With these dealings we are once again showing our ability to both compete for sought after assets and, where appropriate work with larger companies to our mutual benefit.
We have substantially improved the security of our future cash flows by increasing equity in the Cliff Head and Jingemia oil production projects and at the same time balanced our exploration risk. We are particularly pleased about the leverage our shareholders will now have to our 2004 drilling program in which we are budgeting for at least 4 wells. The program is scheduled to commence onshore with the Jingemia-4 well in April, with the next well expected to be a test of the large Fiddich structure offshore.
While the past 12 months for Voyager has been mainly about appraisal and development of our two oil fields (Cliff Head and Jingemia), we see this coming year as primarily about building cash flow, exploration drilling and growth."
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