Planet Gas Limited (Planet Gas or the Company) reported Monday that an agreement has been reached with leading energy company Origin Energy Limited (Origin) and experienced Cooper Basin operator Senex Energy Limited (Senex), relating to Planet Gas’ 20 percent interest in Area B of PEL 514 in South Australia (the subject of the farm-in agreement between Origin and Senex as announced Feb. 24).
Following the Origin/Senex Agreement, a new permit covering Area B (PEL 638) was excised from PEL 514 in which Planet Gas retained a 20 percent participating interest. PEL 638 is administered by two joint ventures; the PEL 638 Deeps joint venture (the subject of the farmin by Origin) and PEL 638 Shallows.
The PEL 638 Deeps work program is split into Stage 1 and Stage 2 with total expenditure of up to $75.3 million or AUD 80 million (as announced Feb. 24).
This agreement, combined with the initial agreement between Origin and Senex means that through Stage 1, Origin will earn a combined 33.75 percent interest (previously 30 percent) in the PEL 638 Deeps from Senex and Planet Gas.
Origin may increase its interests to 45 percent (previously 40 percent) upon the completion of Stage 2.
Senex will hold a 45 percent interest (previously 40 percent) by the end of Stage 2, which includes the further interest it will acquire from Planet Gas, while Planet Gas will reduce to a 10 percent free carried interest.
Senex will be the operator of the programs with Origin having the right to become operator following the completion of Stage 2.
The existing farm-in arrangements between Planet Gas and Senex with regards to oil exploration will continue in PEL 638 Shallows and PEL 514. Planet Gas’ 20 percent interest continues to be free carried by Senex for oil exploration.
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