MELBOURNE, Australia – Melbana Energy subsidiary Finniss Offshore Exploration has entered an agreement to sell its 100% interest in the WA-488-P permit offshore Western Australia to EOG Resources Australia.
The transaction also covers a 700-sq km (270-sq mi) 3D survey and 2D seismic coverage over the concession.
Conditions include securing approval to suspend and extend the remaining permit obligations to allow additional time to drill the initial exploration well; and no objection to the proposed acquisition from the Foreign Investment Review Board (parent company EOG Resources is based in Houston).
EOG Australia intends to drill a well targeting the Beehive prospect in 2022.
Finniss would receive payments of up to $12.5 million for the sale of its permit, plus future payments of $10 million for each 25 MMboe that EOG goes on to produce, sell, and deliver from the permit area.
