Eastern Star will earn the interest by funding 100% of the year one and two work commitments, which consist of seismic acquisition and the drilling of one well.
This agreement follows a similar transaction between the two companies announced in January, in which Comet Ridge farmed out a 75% working interest in the adjacent PEL 427 permit.
PEL 428 covers 6,021 square kilometres and lies immediately to the north and west of Eastern Star’s PEL 238 permit which contains the Coonarah Gas Field, the Wilga Park Power Station and the Bohena coal seam gas pilot, said Comet Ridge managing director Andy Lydyard.
“We are very pleased to be associated with the Eastern Star team as they have demonstrated track record of discovering and commercialising gas reserves in the adjacent permit and have developed a detailed knowledge of this newly developing hydrocarbon province,” Lydyard said.
“This deal enables us to focus our management and financial resources on our more advanced projects coal seam gas projects such as Tipton West and Mahalo, but also exposes our shareholders to an active program driven by the most experienced explorer and producer in the basin.”
Interests in the permit once Eastern Star has fulfilled its earning obligation will be: Comet Ridge Limited 20%, Eastern Star Gas Limited 60% and Davidson Prospecting P/L 20% (a wholly owned subsidiary of Planet Gas Limited).
