Finder Exploration Pty Ltd. (Finder) reported Tuesday that it has entered into a sales and purchase agreement with Quadrant Oil Australia Pty Ltd. (Quadrant) for Finder’s entire acreage holding in the Bedout Sub-basin, i.e. Exploration Permits (Permits):
- WA-435-P – 20 permit
- WA-436-P – 30 permit
- WA-437-P – 20 permit; and
- WA-438-P – 30 permit
The Permits are located 81 miles (130 kilometers) off the coast of Western Australia in the Bedout Sub-Basin and contain both the 2014 Phoenix South oil discovery and the 2015 Roc wet gas discovery.
The transaction is effective March 1 and is subject to conditions precedent as well as procurement of regulatory approval, registrations and joint venture approval. Financial details of the transaction remain confidential, but include a combination of success payments and a royalty.
Finder has a strategic alliance with Fugro to provide technical and/or financial support for selected Finder exploration opportunities. In return Fugro receives a share of the profits earned from the projects in which it participates. As such Fugro is entitled to a 50 percent share of the profits from this transaction.
Shane Westlake, Finder’s CEO said “Finder is proud to have been involved with Carnarvon Petroleum Ltd. (its original Joint Venture partner) in the early exploration phase of a new and potentially prolific hydrocarbon province offshore Australia. Having had two exploration successes now is the time to “hand over the baton” to Quadrant to take these discoveries to first production and to continue exploration efforts. We have great confidence in Quadrant as an operator of choice on the North West Shelf with a strong history of delivering projects on time and within budget. Notwithstanding our exit from the Permits Finder believes in the potential of
the Bedout Sub-basin and as such is prepared to back our technical judgement with a success based payment schedule.”
Jan Ostby, Finder’s founder and sole director said “Our success in the Bedout Sub-basin demonstrates the Finder model works – by adding value in overlooked basins or plays through geoscience excellence and new data. We were fortunate to secure Apache (now Quadrant) along with JX Nippon as initial farmin partners to deliver our 100 percent success rate from exploration drilling based on 3D seismic data in an emerging hydrocarbon province – you just can’t get any better than that!”
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