Lakes Blue secures full ownership of PRL 2 in Victoria
Sydney-listed Lakes Blue Energy has agreed to acquire full ownership of the Petroleum Retention Lease 2 (PRL 2) located in Gippsland, Victoria, it said on May 7.
PRL 2 encompasses the Wombat and Trifon/Gangell gas fields, with Lakes previously holding a 42.5% ownership stake in the latter in a joint venture with Jarden Corporation Australia. Under the terms of the agreement, Lakes Blue Energy will assume full ownership of the Trifon/Gangell block, with Jarden being released from any future liabilities related to the joint venture area.
In exchange for Lakes assuming full ownership, Jarden will forgive an amount of approximately A$170,000 owed to Lakes. Additionally, Jarden will receive a 2.5% overriding royalty on revenue from future gas production from the Trifon/Gangell joint venture area, capped at an aggregate royalty of A$10mn ($6.63mn).
The Trifon/Gangell gas fields boast independently certified contingent (2C) gas resources of 390bn ft3, complementing the 329bn ft3 of 2C gas resources within the Wombat gas field. Lakes Blue Energy now holds a total of 719bn ft3 of independently certified 2C gas resources at PRL 2.
Lakes Blue Energy envisions an integrated approach to the development of the Wombat and Trifon-Gangell gas fields. Initial sales gas production is expected from the Wombat gas field, with the Trifon-Gangell gas field developed to support gas sales over a 20-year period. The estimated conventional sales gas potential of the fields is at least 20 petajoules/year.