Melbana Energy advises that the National Offshore Petroleum Titles Administrator has approved a 20 month suspension of the permit conditions in respect of the Permit Year 3 work program for WA-488-P.
As a result, Permit Year 3 will end on August 21, 2023 and the permit term will end on May 21, 2025.
The WA-488-P permit comprises the Beehive prospect, located in the Bonaparte Gulf, Northern Territory.
In April this year the company entered into an agreement with EOG Resources to sell its WA-488-P permit.
As part of the sale and purchase agreement, EOG will acquire 100 per cent interest in the permit, a 700km2 3D survey and an extensive amount of 2D seismic coverage.
Melbana outlined that the sale would be conducted between its subsidiary Finniss Offshore Exploration and EOG Resources’ subsidiary EOG Australia.
Executive chairman Andrew Purcell said the company is pleased to have reached an agreement with EOG and look forward to the drilling of the first exploration well at the Beehive prospect.
“This transaction allows Melbana to retain significant exposure to the upside of a potential Beehive discovery without being exposed to the costs of offshore appraisal and development, which can be expensive and challenging for a junior oil and gas company,” he said.
EOG advised that it intends to drill an exploration well targeting the Beehive prospect in 2022.
In June last year, the National Offshore Petroleum Titles Administrator (NOPSEMA) approved Melbana’s application for a 12-month suspension of the work program conditions for the Beehive prospect.
As a result, the work program condition in respect of Permit Year 3 would end on December 21, 2021 and the permit term would end on December 21, 2023.
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