Octanex Moves Closer to Acquiring 25% Interest in Derby Block in WA
Octanex N.L. disclosed Monday that it has been advised by Oil Basins Limited that the Department of Primary Industry of the State of Western Australia has granted the Petroleum Exploration Permit 487 (PEP 487), covering the Derby block (Derby Block), in Western Australia to Oil Basins and Back Reef Oil Limited.
PEP 487 derives from Petroleum Exploration Permit Application 5/07-8.
In January 2013, Octanex announced that it has entered into an agreement with Oil Basins to purchase a 25 percent interest in the Derby Block (Purchase Agreement).
The Purchase Agreement is subject to a series of conditions precedent. The primary conditions precedent relate to:
- the satisfactory terms of resolution of the Native Title dispute then in existence;
- satisfactory terms of grant of the Permit;
- approval and registration of the Purchase Agreement as a dealing under the Petroleum and Geothermal Energy Resources Act 1967 of Western Australia (the Act);
- execution and registration of a transfer of the 25 percent interest in PEP 487 into Octanex’s name; and
- finalization and registration of a Joint Venture Operating Agreement (JVOA) by the PEP 487 permit holders
The Purchase Agreement was recently extended for a period of 18 months to enable all the conditions precedent to be met. Octanex confirms that:
- the decision of the Federal Court Dec. 23, 2013, rejecting the appeal of the Native Title Claimants from the earlier National Native Title Tribunal determination Feb. 1, 2013, satisfies the condition precedent relating to Native Title
- the grant of PEP 487 on the present terms satisfies the condition precedent relating to satisfactory terms of grant. Octanex will formally agree to abide by and comply with the terms and conditions of PEP 487
- Octanex supports Oil Basins becoming Operator of PEP 487 under any JVOA which might hereafter be agreed
Oil Basins has advised Octanex that the Purchase Agreement has been lodged for approval and registration as a dealing under the Act. Registration of the Purchase Agreement will provided Octanex with enforceable rights in relation to PEP 487.
The 25 percent interest in PEP 487 is the first onshore acquisition made by Octanex and was motivated by Octanex’s perception of the high prospectivity of the Derby Block for unconventional oil and gas and coal seam gas.
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