Under the deal LNGI will purchase six million cubic feet of gas per day at $2.70 per gigajoule, totalling around $17,500 per day. Brand was the founder of Energy Equity Corporation, which was a leader in small scale onshore LNG production.
The deal is still subject to the JV drilling and production testing a second well on the structure to establish at least 35 billion cubic feet of proven reserves. Current estimates are around 80bcf and once a commercial gas flow rates and reserves are established the field will be developed.
The Point Torment Gasfield is located 20km north of Derby where a mini-LNG plant will be built to liquefy the natural gas and transport the LNG to mining projects in the Kimberley region for power generation.
Participants in the Retention Lease R1 Joint Venture are Empire Oil & Gas 54%, Indigo Oil 17.4%, First Australian Resources 8%, Kimberley Oil 8%, Pancontinental Oil & Gas 8% and Pelsoil 4.6%.
