Golden Dynasty is the operator and sole contributor to this program, while former lease holder European Gas (formerly Kimberley Oil) is diluting to a minority interest and a well head royalty.

Golden Dynasty has decided to suspend its current drilling program and release the rig. The existing prospect inventory will be remapped and re-ranked after seismic data is reprocessed.

“This work is expected to produce additional prospects and enable a further drilling program to be coordinated,” European Gas said.

“Golden Dynasty has also announced that it plans to commence a workover program on the existing production assets in the Blina field.”

As part of European Gas’ Canning Basin divestment program, Golden Dynasty has the right to earn up to an 80% equity in Terratek Drilling Tools, which is currently a wholly owned subsidiary of European Gas and holder of Exploration Permit 129, Production Licences L6 and L8 covering 1470 square kilometres. European Gas is diluting to a 20% interest in Terratek.

In addition to its equity interest in Terratek, European Gas will retain a 2% well head royalty in the permit and licences.

Golden Dynasty is required to spend $3.5 million in exploration expenditure and research.

Outside of the Terratek Agreement, European Gas also