AuDAX has entered into a joint venture agreement with another Perth-based junior, Eagle Bay Resources (EBR), enabling it to earn 49.9% interest in PEL 182, said AuDAX managing director Gary Roper. “We’re new to the game but we’re not naïve,” Roper said.
“We’ve used independent consultants who were very positive about the block and we’ll continue to use independent consultants to keep us on the straight and narrow.”
The 1,745 square kilometre permit is 60km north of the Moomba processing facilities and is close to existing pipelines.
“Gas and oil pipelines run either side of our six targets in the south-east corner of the lease,” Roper said.
PEL 182 already has nine oil and gas finds that have been excised into production licenses.
To get the permit, EBR has committed $21.55 million to be spent over three years. It will drill 11 oil and gas wells.
EBR will be the operator and will use a fulltime consultant to run the project. AuDAX will contribute an initial $4.5 million and thereafter the JV partners will contribute on a pro rata basis.
In the meantime, AuDAX will continue to search for gold.
AuDAX spent many years in the media spotlight after winning a long drawn out and bitterly contested ownership wrangle with prospecting legend Mark Creasy over the Bronzewing gold permit. They had both lodged competing pegging claims within seconds of the opening of the Goldfields mining administration office.
