Cooper Energy will fund Enterprise's entire portion of the drilling of the Fairbridge-1 well to earn a 10% interest in this new sub block. This will result in a cost saving to Enterprise of approximately $360,000 while still retaining 10% in the sub block area.
The arrangement also gives Cooper Energy an option to earn 10% interest from Enterprise in the remaining area of PEL-100 by funding Enterprise's share of a second well. This will be financially beneficial to Enterprise as it will save an additional $360,000. Enterprise will still retain a 10% interest in PEL-100 should Cooper exercise this option.
This farmout will strengthen Enterprise's capital position and will allow the company to pursue new exploration opportunities in prospective areas, some of which are currently under technical review. Hence, by reducing the commitment to PEL-100, Enterprise will be able to participate in the drilling of more wells thus raising the chance of future success.
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