Black Rock Announced Disposal of R3 Retention Lease in Australia
The Board of Black Rock announced that the company has agreed to dispose of its 15% interest in the R3 retention lease in offshore Western Australia operated by Tap Oil which contains the currently non-commercial Cyrano Field Oil Basins Limited Pty.
As identified in the Company's 2006 Annual Report, longer term projects such as the R3 Retention Lease that do not meet expectations will be terminated rather than consume funds and management time. The total consideration payable by OBL on completion amounts to A40,000 in cash and 500,000 new OBL ordinary shares. Based on the closing OBL share price of 11 Australian cents per OBL ordinary share, the total consideration amounts to $95,000.
Wildlook Enterprises Pty Ltd a wholly-owned subsidiary of Black Rock, holds the R3 Retention Lease. Black Rock wrote down the value of Wildlook in its 2007 accounts to zero. Wildlook is a dormant company and did not trade in the year ending on June 30, 2007. The disposal is not therefore expected to have a material impact on earnings or assets in the current financial year ending on June 30, 2008. The proceeds of the disposal will be used to provide additional working capital for the Company.