Blue Energy Limited announced that it has entered into a binding term sheet with Australian Oil and Gas Limited (AOG) in relation to 9 large exploration blocks in the Wiso Basin in the Northern Territory.
The proposed farm-in agreement - to be undertaken by a Blue Energy wholly-owned subsidiary - involves a total area of 43,200 square miles (111,887 square kilometers) of the Northern Territory (NT), an area approximately equivalent to the size of England.
Blue Energy’s Chairman, John Ellice-Flint, said “securing such a large dominant basin acreage position at this early stage of exploration in the Wiso Basin positions the Company ideally to take advantage of the high demand by global energy players for unconventional hydrocarbon acreage. The relatively shallow nature of the potential marine Cambrian source rock sequence in the Wiso Basin, suggests that it would still be in the liquids maturation window and thus not a high cost deep drilling target as other shale targets elsewhere in the world can be.”
“Significantly, we note the widening attention and interest the Northern Territory sedimentary basins are receiving from domestic and international oil companies. Statoil, Santos, Central Petroleum, Total, Pangaea and Armour Energy are among a list of companies with adjacent active acreage to Blue Energy’s new Wiso Basin permits,” Ellice-Flint said.
“We expect the entry into Australia of the large multinational oil and gas companies seeking unconventional exploration acreage will continue, especially given Australia’s favorable fiscal regime, the large acreage positions available and the demonstrated prospectivity of the large under-explored sedimentary basins that this nation possesses,” he said.
“Our entry into the Northern Territory oil and gas space with such massive acreage is a further timely boost to Blue Energy’s already significant licence areas in Queensland, and further derisks the existing portfolio by expanding into an oil prone and proactive jurisdiction like the Northern Territory. The envisaged future economic development of Northern Australia would be significantly assisted by the discovery of local energy sources. The Wiso Basin exploration
Under the terms of the farm-in Blue Energy will make an upfront cash payment to cover back costs incurred by AOG and fund the 3 stage work program to earn a 50 percent equity position in the permits.
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