Eneabba Gas Limited (Eneabba, ENB or Company), a Western Australian energy firm, disclosed Wednesday that it has entered into a binding Heads of Agreement (HOA) with Greenpower Energy Limited (Greenpower) for an option to acquire 100 percent of the issued capital of Greenpower’s wholly owned subsidiary, GCC Methane Pty Ltd. (GCC). GCC owns a 50 percent interest in Exploration Permit 477 (EP 477 or the Permit), located in the Perth Basin, approximately 12.4 miles (20 kilometers) to the south-east of Eneabba’s Ocean Hill Project.
Acquisition Option Terms
ENB will pay a $23,472 (AUD 30,000) non-refundable option payment for a 45 day exclusive period in which time ENB will complete its due diligence on the Permit. If ENB elects to exercise its option to acquire GCC (GCC’s only asset is EP 477) it will pay $641,568 (AUD 820,000) to Greenpower for 100 percent of the issued capital of GCC.
About Exploration Permit 477
The permit covers approximately 428 square miles (1,108 square kilometers) and includes the formerly producing Waylering Gas Field. 2D seismic coverage of the permit consists of the 2013, UIL Energy Badgingarra 2D seismic survey, heritage, 1970s data acquired by WAPET and 1990s data acquired by Discovery Petroleum. The Badgingarra survey covered 83 square miles (215 square kilometers). ENB’s first round review of the available technical data has identified a significant potential resource contained within the permit area.
Eneabba Gas Director, Thomas Goh commented:
“We have been aggressively reviewing opportunities in the Perth Basin that are early entry and provide opportunity to value add through data acquisition. Our process of evaluation has focused on permits that have large potential gas reserves, are close to infrastructure and can be quantifiably derisked. The addition to our portfolio of EP477 is consistent with our strategy of building a strong onshore domestic energy company.”
Concurrent with the execution of this option agreement, and consistent with the Company’s new Perth basin development strategy, the Board is pleased to announce the appointment of Barnaby Egerton-Warburton as a Director of the Company.
The intended appointment of Egerton-Warburton to the Board was previously announced Oct. 22, 2014, and was contingent upon the successful acquisition of the Ocean Hill Gas project. The Board has approved the early appointment of Egerton-Warburton in order to leverage his commercial skills to further the Company’s Perth basin development strategy.
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