Australian energy company WHL Energy Limited (WHL Energy or the Company) reported Wednesday that it has signed an Option Agreement with Tap Oil Limited (Tap Oil). Tap Oil have agreed to pay up to a maximum $2.95 million for an option to acquire an initial 10 percent interest in the offshore Otway Basin Vic/P67 permit, Victoria, Australia.
The agreement with Tap Oil follows the Sept. 4 Australian Securities Exchange (ASX) announcement on a farm-out agreement with AWE Limited under which AWE will pay 75 percent of the total cost to acquire a state-of-the-art 3D seismic survey over the La Bella field and surrounding exploration targets, capped at $9.0 million to earn up to a 60 percent equity in Vic/P67. Any costs that may exceed this cost cap will be borne by AWE and WHL at 60 percent and 40 percent respectively, Tap will have no further funding obligation for its seismic option in excess of $2.95 million.
The transfer of interests to AWE and Tap will be subject to normal regulatory approvals.
Tap Oil’s cash payment is expected to substantially cover the balance of WHL Energy’s financial commitment for the 3D seismic acquisition campaign.
The planned 313.1 square miles (811 square kilometers) 3D seismic survey is scheduled to be acquired in 4Q 2013. WHL Energy has received full environmental approvals for the survey which will further refine the mapping of the La Bella gas and condensate field and the surrounding prospects, along with developing drilling targets.
WHL Energy Executive Director, David Rowbottam, said the second successful farm-out of an interest in Vic/P67 was an important milestone for WHL Energy and the La Bella project.
“The support we have received from companies of the calibre of AWE and Tap Oil vindicates our decision to bid for the Vic/P67 permit initially and for the tremendous technical work the WHL Energy team has done to understand and promote the geological and commercial upside of La Bella and the surrounding exploration targets.
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