BHP Completes Farmin Agreement With Woodside

Cue Energy Resources Ltd has announced that BHP Billiton has completed a farmin agreement with Woodside for Banambu Deep-1 in the offshore Carnarvon Basin.

Under the terms of the agreement BHP Billiton will acquire a 40% participating interest in the WA-389-P permit (subject to Cue not exercising its pre-emptive rights and regulatory approvals). As part of the farm-in arrangements BHP Billiton will pay up to a capped amount for 100% of the drilling of the Banambu Deep prospect.

“The objective is a high impact exploration opportunity within our focus area, and is part of a wider acreage holding in the Carnarvon Basin. Cue considers that the entry of BHP Billiton into the permit to participate in drilling Banambu Deep is an endorsement of the high potential of the prospect and the permit,” Cue said.

Woodside now has a 25% share, while Cue Energy retains its 35% share. BHP Billiton has a 40% share.