Cooper Energy Limited has announced the farmin agreements with Bass Strait Oil Company Limited (BAS) announced to the ASX on 5 July 2013 have now been executed by both parties.
The agreements provide for Cooper Energy to acquire interests in Gippsland Basin permits Vic/P41 and Vic/P68 through completion, at its sole cost, of reprocessing and merging of multiple 3D seismic datasets and conduct selected QI/AVO analyses in relation to both permits.
These permits are considered to have strong commercial fundamentals as they contain a number of sizeable gas prospects and are located within close proximity to existing infrastructure and a range of development and market opportunities.
Under the terms of the agreements, Cooper Energy will fund Bass Strait Oil Company’s share of reprocessing and merging of multiple 3D datasets and selected QI/AVO analyses. In consideration for the work to be undertaken, Bass Strait Oil Company will assign Cooper Energy a 25.8% interest in Vic/P41 and the option to acquire a 50% interest in Vic/P68.
Commenting on the agreements, Bass Strait Oil Company CEO, Terry White, said “the strategic location of these permits and the current commentary on potential increasing domestic gas prices make the farmouts announced today a timely first step for Bass Strait Oil to ascertain a deeper understanding of the sizeable gas prospects that lie within Vic/P41 and Vic/P68. We are very pleased to have finalised the agreements with Cooper Energy who will bring significant technical and gas commercialisation expertise to our activities as well as a strong balance sheet to be able to advance work programs on these permits moving forward.”