Ambassador Farms Out Stake in Cooper Basin Pernmit

Ambassador Oil and Gas has entered into a farmout agreement for 70% share of its highly prospective PEL 570 oil and gas exploration permit in the South Australian portion of the Cooper Basin to Outback Energy Hunter.

As per the agreement, Outback Energy Hunter will agree to pay all costs (including funding Ambassador’s remaining 30% share) associated with the exploration work program to satisfy the first 5 year term of PEL 570 up to a maximum of A$50 million.

The licence area is located approximately 75 kilometres north of the Moomba gas processing facility in the north-east of South Australia.

The area has coal seam gas potential of 6,491 BCF of gas in place in the Patchawarra trough contained in some of the thickest coal seams in the entire Cooper Basin. It also has shale gas potential of 1,481 BCF of gas in place in the Murteree shale in the Patchawarra trough.

The license also has potential conventional oil and gas prospects.