Melbana Energy Limited (Melbana) (MAY) is pleased to advise that it has received environmental approval from the regulator, NOPSEMA, to undertake the Beehive 3D Seismic Survey over the Beehive Prospect which is one of the largest undrilled hydrocarbon structures in Australia.
The Beehive 3D Seismic Survey is being operated by Australian energy company Santos pursuant to an
Operations Services Agreement and is fully funded by French major Total and Santos.
The Beehive 3D survey contractor will be appointed imminently and the survey itself is expected to be commenced in July and completed before the end of August 2018. The survey is a typical 3D survey using methods and procedures similar to others conducted in Australian waters.
The survey acquisition area is approximately 600 km2 with a larger operational area around it to allow for vessel turns and testing of equipment. The operational area is located in the Joseph Bonaparte Gulf, approximately 225 km west-southwest from Darwin.
Total and Santos have an option (exerciseable together or individually) to acquire a direct 80% participating interest in the permit in return for fully funding the costs of all activities until completion of the first well in the WA-488-P permit. In the event of a commercial discovery, Melbana will repay carried funding from its share of
cash flow from the Beehive field. Melbana will have no re-payment obligations for such carried funding in the event there is no commercial discovery and development in WA-488-P.
The acquisition of a new 3D seismic survey over Beehive will provide potential for further de-risking of the prospect and will facilitate consideration of a preferred location for the Beehive-1 exploration well.
Melbana’s CEO, Robert Zammit, commented on the announcement:
“We are pleased that we have been able to secure the environmental permit in sufficient time to enable the
prompt acquisition of the Beehive 3D Seismic Survey. Our existing commercial arrangement with Total and
Santos provides Melbana with the opportunity to explore this enormous prospect at no further cost to Melbana
through to the completion of the first exploration well, which if successful, would be a game changer for our
company, the region and its shareholders.”