Venator Acquires ATP 1194 in the Cooper Basin from Real Energy
ASX-listed Real Energy Corporation Ltd. has executed a term sheet with Venator 1194 Pty Ltd. to sell its entire interest in exploration permit ATP 1194 located in the Cooper-Eromanga Basin in south-west Queensland.
Under the terms of the agreement, Venator will make a cash payment of A$225,000 to acquire a 100% operated interest in ATP 1194, including a A$25,000 non-refundable deposit paid upfront. Real Energy will also be granted a 1.5% royalty on gross sales from any future production from the permit.
ATP 1194 covers an area of approximately 1,043 sq. km situated in close proximity to Bodalla South and Black Stump oil discoveries, and Thylungra and Bunya gas fields. The permit is considered prospective for oil and gas within the Permo-Triassic Cooper basin section, and for oil in the Jurassic and early Cretaceous Eromanga basin sequence. ATP 1194 contains two exploration wells drilled to date, both of which were plugged and abandoned and no other fieldwork in the area has been completed. The permit was initially awarded in 2015 to Queensland Oil Pty Ltd., a wholly-owned subsidiary of Real Energy, and is relatively under-explored when compared with adjacent areas.
Sydney-based Real Energy holds interests in the Cooper and Surat basins, with a primary focus on the Windorah Gas Project and Project Venus, both located in Queensland. In July 2020, Strata-X Energy Ltd. entered into a Scheme Implementation Agreement (SIA) to acquire the company in an all-stock transaction valued at approximately A$5.85 million. The SIA will result in a nil premium merger, and the combined entity will be renamed “Pure Energy Corporation Ltd.”
“We are pleased to be executing this term sheet as it allows us to rationalise our Cooper Basin acreage to our preferred area of interest, and we can direct greater investment to the Project Venus in the Surat Basin which holds lots of near-term upside. As well, we are pursuing a number of initiatives through our 100% owned Pure Hydrogen Corporation. We have a great deal of optionality across the asset base,” said Real Energy’s Managing Director, Scott Brown.
The transaction is subject to customary closing conditions, including the completion of due diligence and receipt of government approval for the permit transfer.