Moby plans to drill one well in the offshore Gippsland Basin prospect to test a structure in which hydrocarbons were encountered in wells drilled a number of years ago, the potential of which has been reconfirmed by 3D seismic imaging.
Following the drilling of this well Moby will hold a 35% working interest in VIC/P47 with EBR maintaining a 25% free carried interest through the drilling and the remainder belonging to private company Bass Strait Oil.
This reduces the drilling risk for EBR and reduces the need for further dilution of the company’s stock to fund the well.
As part of the negotiation EBR also successfully negotiated the right for its shareholders to be offered priority in the Moby’s issue.
The basis of the Moby issue will be 36.88 million ordinary shares, together with 18.44 million 31 December 2004 options and 18.44 million 30 June 2008 options.
EBR has also agreed to fund a Falcon Survey over its South Australian ELA 105/00 mineral tenement this month. The survey will cost the company $185,000 and cover 325 square kilometres at a line spacing of 200m.
