Key summary terms of the agreement are as follows: QUAY is an associate of the
QUAY will earn a 50% interest in permit WA-424-P for providing debt funding in two tranches to the WA-424-P unincorporated joint venture (JV), (IPBWA 50% and operator, QUAY 50%), for funding 100% of the costs budgeted for the Idris appraisal well and potential future first stage field development.
The funding tranches are summarized as follows: A firm Tranche A advance of
Optional Tranche B advance of
Timing for completion and closing of the transaction is anticipated within the next 4-6 weeks.
In accordance with the agreement and subject to conditions, QUAY will have an option to market stabilised liquid hydrocarbons from the permit should a development proceed.
The agreement is conditional upon amongst other standard conditions, the Titles Regulator NOPTA registering QUAY's interest in the WA-424-P Permit.
Brendan Brown IPB's Managing Director commented, 'We are extremely pleased to secure this farmout and funding arrangement with QUAY, our proposed JV partner. We look forward to progressing the planning, technical and commercial work shortly in relation to our proposed Idris appraisal well, which if we are right in our pre-drill studies, may prove to be a real game-changer for further exploration and development in the
This transaction not only provides for the costs of drilling and testing Idris, but in the event of a commitment to develop provides an attractive incentive for Quay to provide the necessary capital for funding through to production on pre agreed terms, with repayment to come out of future production net income.'
Contact:
Tel: +61 3 9598 0188
Email: admin@ipbpet.com.au
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