In a statement today, Metgasco said it has agreed to farm-in to earn 50% of the CSM and/or conventional hydrocarbon rights in two permits – PEL 426 and PEL 13 – held by Molopo.
Under the first deal, Metgasco will be entitled to half of the CSM and conventional hydrocarbons in PEL 426, in return for spending $500,000 on an agreed work program.
It comprises one new dual target exploration well and acquiring new seisimic and reprocessing existing data over two “highly prospective” conventional hydrocarbon structures.
The company may elect to increase its CSM rights in the permit to 75%, if it spends a further $250,000 on additional drilling or new seismic in the permit.
Under the second deal, Metgasco will earn up to half the conventional hydrocarbon interest in PEL 13 by spending $300,000 on a mutually agreed work program.
“Despite exploration dating back to the 1960s, the Clarence Moreton basin remains under-explored and has the potential to host both coal seam gas and conventional hydrocarbon accumulations with earlier exploration identifying a number of structures, which are as yet untested,” Metgasco managing director David Johnson said.
