UK's Clontarf buys 10% stake in Aussie gas licence
UK-listed Clontarf Energy has acquired a 10% interest in the Sasanof prospect offshore Western Australia, it said on May 9. The purchase is through the acquisition of a 10% interest in Australian gas company Western Gas.
The acquisition consideration will be comprised of $4mn cash and 100mn ordinary shares of 0.25p each, valued at £480,000 ($592,658). In the event of a discovery being declared at the Sasanof-1 well, the consideration will be further increased by 150mn ordinary shares, up to a maximum of £8.7mn, being 80% of the market capitalisation at May 6 close, Clontarf said.
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Western Gas plans to drill the Sasanof-1 well in Sasanof prospect during May or June this year. Sydney-listed Western Gas in March said it had secured funding commitments to fully fund the drilling of the Sasanof-1 exploration well on Western Australia’s North West Shelf.
Drilling is expected to cost around $20mn, of which Clontarf is funding $4mn. In the event that the costs for the Sasanof-1 well overrun, Clontarf will be responsible for 20% of a further $5mn. Thereafter costs will be paid for on a pro-rata basis, the company said.
Post the deal, Western Gas will hold 52.5% in the prospect. The other partners in the licence include Global Oil and Gas (25%) and Prominence Energy (12.5%).
Sasanof has a 2U prospective resource of 7.2 trillion ft3 gas and 176mn barrels condensate, with a 32% geological chance of success, Western Gas said in March. Sasanof-1 will be Western Gas’ first well drilled from its extensive exploration portfolio surrounding the existing Equus gas project.