Key Petroleum, Traingle Energy Perth basin deal to take more time
Key Petroleum’s deal to sell its permits in the Perth basin to fellow Australian explorer Triangle Energy will take some more time to complete, the company said on June 16. The deal was first announced in January 2021.
“There have been a number of delays, however, with completion nearing the end, Key and Triangle have agreed to further extend the proposed cut-off date for the agreement to 30 September 2022. It is anticipated that completion will occur before this date,” Key said. The cut-off date has been extended a couple of times before as well.
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Last year, Key entered into a sale and purchase agreement and royalty deed with Triangle to sell 50% participating interest in production licence L7. Also, Key and its subsidiary Key Midwest sold a combined 86.94% interest in exploration permit EP 437 to Triangle.
Triangle agreed to pay Key a cash consideration of A$600,000 ($420,462) of which A$200,000 is payable as a non-refundable deposit unless Key does not obtain shareholder approval. The remaining A$100,000 of the balance owing to Key will be paid by Triangle at completion.
On completion of the deal, the existing farmout agreement between Key and Triangle in relation to the L7 licence at Mt Horner announced in 2018 will terminate and the parties will release each other from all claims and liabilities in respect of L7 and the farmout agreement.