PRE Exercises Option to Acquire 35% in Bilby Well

Source: www.gulfoilandgas.com 3/28/2013, Location: South America

Pacific Rubiales Energy Corp. has elected to exercise its option to acquire a 35% interest in Karoon Gas Australia Ltd’s Santos Basin Block, S-M-1166. In consideration for acquiring the option interest in S-M-1166, Pacific Rubiales will fund the initial US$70 million in well costs along with 35% of costs thereafter relating to the Bilby-1 exploration well.

Agreement Background
In October 2012, Karoon and Pacific Rubiales executed final agreements for PRE to acquire a 35% interest in the Karoon’s wholly owned Santos Basin exploration blocks, S-M-1101, S-M-1102, S-M-1037, S-M-1165 and S-M-1166 ("Blocks").

As part of this agreement, Pacific Rubiales has paid Karoon US$40 million, as consideration for the assignment of the first of the Santos Blocks and carried the first US$70 million in well costs for each of the two wells in the Santos basin exploration program, Kangaroo and Emu/Cassowary. Pacific Rubiales will now carry the first $70 million in well costs at Bilby, for a cumulative total of US$210 million in well carry. After meeting the first US$70 million in individual well costs, Pacific Rubiales will meet 35% of all costs thereafter.

Karoon will remain operator of the blocks during the three well exploration phase and Pacific Rubiales will be entitled to request the operatorship after such time, subject to the completion of its farmin commitments, and compliance of all regulatory and other legal requirements to the satisfaction of the ANP.

The transaction is conditional on obtaining regulatory approval from the Agencia Nacional do Petroleo ("ANP") of the assignement.

Karoon Gas executive chairman, Robert Hosking, said, "Pacific Rubiales has proven to be a great partner for Karoon in the Santos Basin drilling program. Our companies have worked well together in our Brazilian partnership, having made the Kangaroo discovery and we look forward to further success in the future."

For more information about related Opportunities and Key Players visit Brazil Oil and Gas Projects


Tanzania >>  6/29/2022 - Wentworth, the independent, Tanzania-focused natural gas production company, is pleased to provide an update on its agreement with Scirocco Energy plc...
Tanzania >>  6/29/2022 - Scirocco Energy, the AIM investing company targeting attractive assets within the European sustainable energy and circular economy markets, is please...

Brazil >>  6/27/2022 - Petrobras, following the announcements released on 02/08/2021, 08/25/2021 and 10/01/2021, informs that it restarted the sale processes of the Abreu e ...
South Africa >>  6/27/2022 - In accordance with a farmout agreement (the "Agreement"), Eco (Atlantic) Oil & Gas Ltd., the oil and gas exploration company with a focus on the offsh...

United States >>  6/27/2022 - Sitio Royalties Corp. (STR) ("Sitio") announced that it has completed the acquisition of over 19,700 net royalty acres ("NRAs") in the Permian Basin f...
Brazil >>  6/24/2022 - Petrobras, following up on the release disclosed on 06/23/2022, informs that it signed with BW Energy Maromba do Brasil Ltda (BWE), the contracts for ...

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

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


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.