Australia-listed MEC Resources Limited reported that investee Advent Energy Limited has successfully renewed Retention License 1 (RL1) in the Bonaparte Basin, straddling the border between Northern Territory and Western Australia, for a further five years.
RL1 covers an area of 64 square miles (166 square kilometers) and comprises the Weaber gas field, which was discovered in 1985 but has not been brought into production. The Weaber gas field has been independently assessed by Resource Investment Strategy Consultants to contain a mean 18.4 billion cubic feet of Contingent Resource.
"In addition, RL1 and the nearby EP386 have been assessed to comprise considerable unconventional (shale gas) resources, estimated at 9.8 trillion cubic feet prospective recoverable resources (P50)," MEC said in an announcement on the Australian Securities Exchange.
Advent Energy, through its wholly owned subsidiary Onshore Energy Pty Ltd, has 100 percent interests in RL1 and EP386. The company signed a Letter of Intent (LOI) July 8 with CO2 Group's unit Western Australian Resources Limited (WARL) for potential gas supply to WARL’s proposed aquaculture project in northern Australia. The non-binding LOI provides an initial framework for discussion, information sharing and negotiation towards a possible gas supply agreement by the fourth quarter of 2014.
“This (LOI) is an excellent development for Advent and its key onshore Bonaparte Basin assets EP386 and RL1 in the drive for their commercialization," Advent’s Executive Director David Breeze said in an earlier company announcement.
Advent’s major shareholders are MEC Resources, BPH Energy, Talbot Group and Grandbridge.
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