Goshawk will acquire Squadron’s 80 per cent joint venture interest in the Canning Basin applications and EP 499.
Currently, Goshawk has paid $70,000 for the first instalment to Squadron, whilst the second instalment will cost Goshawk $2.8 million.
The Canning Basin is located around 1500 km northeast of Perth in central northern Western Australia.
GEC and Goshawk plan to advance the Helvetica Oil Prospect by way of Farm-In or ASK IPO listing.
The two companies are subsequently already in discussions with several interested groups to discuss this plan.
The Helvetica Prospect was drilled in 1985 with the Pandorea-1 well and defined from existing 2D seismic data and a shallow test well.
The Helvetic Prospect plans to test the deeper salt sealed structure.
GLV is a 20 per cent shareholder in GEC, however the company is not incurring any further costs or liabilities under the sale agreement.
GLV director Patric Glovac said it was beneficial to have the company’s flow through exposure on EP 499.
“While we respect Squadron Energy’s decision to exit the JV is aligned with its climate policy and continued focus on supporting the transition to a low carbon economy, we see great opportunities in having our flow through exposure on EP 499, by way of out investment in GEC, increase from 4 per cent to 20 per cent,” Glovac said.
“This is how consistent with our exposure across the whole GEC portfolio. Having an increased net exposure, unrisked Best Estimate Undiscovered PIIP, to potentially 38.8 MMbbl just adds to the exciting portfolio of assets our shareholders are gaining exposure too.”
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