Petrel extend its Call Option Deed on exploration permit application STP-EPA-012, in the north Perth Basin Western Australia.
The Call Option Deed which is over all the shares in Palatine Energy Limited (Palatine) provides Petrel with an additional 12 month call option to acquire all Palatine shares for $200,000 in cash or Petrel ASX listed ordinary shares with a further $100,000 of shares payable once approvals are in place and a work programme has commenced in the northern Perth Basin Permit.
The initial Call Option Deed signed in April 2016 was subject to progress on Native Title Agreements with 3 native title parties which were in the early stages of negotiations. With the substantive terms of the three Native Title Agreements almost finalised and about to be lodged with the National Native Title Tribunal Petrel is hopeful of the permits being granted and has elected to extend for a further year for $10,000 to allow this process to be completed. Petrel will meet all reasonable costs in relation to the native title negotiations during this period.
STP-EPA-0127 which on final grant will be 2.2m acres (8,700 square kms) will be the largest of the exploration permits in the Perth Basin. It is 130 km north of the AWE - Beach Perth Basin Waitsia play which has re-invigorated Perth Basin exploration and development, and is the largest onshore conventional gas discovery in Australia for the last 40 years. AWE Limited recently recommended a takeover from Mitsui & Co valuing AWE at $602m based largely on its 50% interest in the Waitsia gas project in the Perth Basin.
The STP-EPA-0127 permit
Main exploration targets identified in the Coolcalalaya sub-basin are:
Conventional and Unconventional Potential
Primary Lower Permian Kingia and High Cliff Sandstone targets are equivalent to the Waitsia conventional/tight gas setting.
Upper Permian Dongarra Sandstone represents a secondary conventional/tight gas target.
Devonian Gneudna Fm. is absent in most of the Perth Basin but is present in the Coolcalalaya Sub-basin (STP-EPA-0127) and the Merlinleigh Sub-Basin (South Carnarvon Basin) and represents a secondary unconventional target.
Potential play in conventional tilted fault blocks, involving Permo-Carboniferous sandstones reservoirs along the western edge of the main trough, and sourced from the Devonian Gneudna Formation.
North Perth Basin Work Programme