Gulf Oil and Gas accountACCOUNT

Oil Basins Withdraws from EP487 Derby Block

Source: www.gulfoilandgas.com 3/16/2017, Location: Not categorized

Share |
The Directors of Oil Basins Limited (OBL) wish to advise that OBL has decided to effectively withdraw from its position as a 50% Joint Venture Partner in EP487 (Derby Block). Rey Resources Limited (REY) holds 50% of EP487 via its subsidiary company Rey Lennard Shelf Pty Ltd (RLS). RLS is the Operator of EP487. OBL has executed a binding Asset Sale Agreement to transfer its 50% ownership of EP487 to Rey Derby Block Pty Ltd which is a further subsidiary of REY (RDB).

The transfer will occur at a nominal value and will relieve OBL of any funding obligations under the current Joint Operating Agreement. This relief includes the waiver of approximately $577,000 of existing cash calls made by REY on OBL and a further $32,000 of legal fees outstanding from historical disputes. The transfer will affect a full settlement of all claims between REY and OBL in relation to the Derby Block.

The Asset Sale Agreement has two Conditions Precedent requiring both approval of the asset transfer by the Foreign Investment Review Board and approval under the Western Australian Petroleum Legislation. As part of the asset sale, RDB will formally assume the royalty payment obligations of OBL in respect of its interest in EP487 owed to OBLís subsidiary Oil Basins Royalties Pty Ltd.

OBL has determined that the Derby Block no longer remains a core asset for the Company as OBL is not willing to fund its 50% commitment to the EP487 work program and is not prepared to raise the capital to do so.

For this reason OBL has decided to withdraw from EP487 and will focus on the continued assessment and conceptual studies for development of the Companyís Offshore Permit VIC/P47 in the Gippsland Basin. VIC/P47 contains the Judith Gas Field which is located 2km from the Kipper Field currently being developed by Esso Australia Resources, BHP Billiton and Mitsui.

Acquisitions and Divestitures News in Australia >>

Jamaica >>  3/24/2017 - Marubeni Corporation (Marubeni) is pleased to announce its participation in the Old Harbour gas-fired power station (Old Harbour Project) in Jamaica t...
United Kingdom >>  3/23/2017 - Statoil was awarded six UK licenses, five as operator and one as partner, in the 29th Offshore Licensing Round, announced by the Oil and Gas Authority...

United States >>  3/23/2017 - Statoil resets its exploration in the Gulf of Mexico and was today deemed high bidder on 13 leases in the 2017 Central Lease Sale. Statoil successfull...
Ivory Coast (Cote D'Ivoire) >>  3/22/2017 - Eni has obtained majority stakes in two new exploration blocks off the shore of the Ivory Coast. The two blocks are located approximately 50 km from t...

South Africa >>  3/22/2017 - China's Sinopec will pay almost $1 billion for a 75 percent stake in Chevron Corp's South African assets and its subsidiary in Botswana to secure its ...
United Kingdom >>  3/22/2017 - RockRose Energy announced on 22nd December 2016 that it had signed sale and purchase agreements with Maersk Oil North Sea UK to acquire its non-operat...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Australia Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 |

More News

 

Oil & Gas Companies in Australia >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Privacy Policy.