executes an agreement to farm-in into North Carnarvon Basin
21 September 2012 - Karoon Gas Australia Ltd. (ASx:
KAR) through its subsidiary Karoon Gas (FPSO) Pty Ltd, executed
final agreements for Karoon to acquire a 100% interest in WA-482-P
in the North Carnarvon Basin, Australia (Permit), from USA
Independent Liberty petroleum Corporation (Liberty). In
consideration for the equity in the Permit, during the first two
work permit years, Karoon will manage the permits and be solely
responsible for the programs, budgets and expenditure on the
Karoon has conducted a significant amount of due
diligence over the acreage before its recent award to Liberty, and
is pleased that it has the opportunity to add prospective acreage
before its recent award to Liberty, and is pleased that it has the
opportunity to add prospective acreage at the beginning of the
exploration lifecycle to complement its more mature exploration
acreage which has reached the drilling phase. Karoon believes
that the transaction was executed on favorable terms allowing
Karoon freedom to explore the block in the early stages but avoid
a large capital commitment if it chooses to exit before Year 3.
is required to meet the year 1 and 2 work program commitments, as
Year 1: License 3,800 km2
reprocessed 3D seismic data and approximately 5,000 line km of
reprocessed 2D seismic data; and
Year 2: Acquire and
process 2,010 km2
3D seismic data.
completion of the second year of the Permit term, Karoon has
withdrawal rights under the farm-in agreement and would be removed
from title after ear 2 and, importantly, before Year 3 well
commitment in is due. If Karoon elects to acquire the Permit,
such assignment will be conditional on regulatory approval.
Liberty is entitled to certain milestone cash bonuses and a
royalty in the event of production.
Karoon is responsible for conducting all operations on the Permit
during the farm-in period.
WA 482 Granted to Liberty September 2012
WA-482-P Block Status
North Carnarvon Basin, Australia. 400-2000m
water depth. On trend with North Carnarvon Basin Mungaroo
plays and Phoenix gas discovery.
6 prospects with Prospective Resource total of
approximately 2.8 billion barrel of oil.
Farm out to Karoon September 21, 2011
They earn 100% by completing years 1 and 2 work
program of geological and geophysical studies and acquisition of
2010 sq km 3D seismic.
Karoon Forward plan:
Acquire seismic (in progress now)
Karoon has received several queries to farm in to
WA-482-P. Karoon is currently considering its options.
Currently acquiring 2300 sq Km 3D seismic over
the eastern area of the permit.
Reprocessed existing 3D seismic data received and
is currently being interpreted.
Future exploration plans:
Complete 3D seismic acquisition 3rd quarter and
process to PSDM ahead of integrated seismic QI and geological
studies. Drilling planned for early 2015.
Development Options: likely to be standalone FPSO.
Economic screening studies initiated.