The acquisition will increase the Sydney-based company’s total equity in the Origin Energy-operated permit to 30%.
Under the farm-in deal, AWE will carry a proportion of Origin’s forward exploration expenditure in the T/18P area.
“In addition to the existing Trefoil and White Ibis discoveries, the permit is highly prospective for new discoveries and contains a number of identified exploration and appraisal leads and prospects,” AWE said.
Meanwhile, AWE said it has also agreed to sell its 24.29%-owned interests in the onshore Otway basin in Victoria to Origin for $5 million in cash.
The main assets in the sales package are AWE’s interests in the declining Katnook and Ladbroke Grove gas fields and their associated production infrastructure.
The company said as at December 31, 2006, it was carrying these assets in its balance sheet at zero book value.
