Rey Resources Limited
(ASX:REY) says its subsidiary Rey Lennard Shelf has agreed to buy a 50 per cent interest in a petroleum exploration license in the ‘Derby Block’ in Western Australia’s Canning Basin.
Derby Block’ is a joint venture between Backreef Oil and Oil Basins Limited
(ASX:OBL) and is located to the north of Rey’s existing petroleum exploration licenses in the area.
Rey Resources will aquire Backreef’s 50 per cent interest in the project for either $2 million on grant of a production license or a 2 per cent royalty on future production.
Backreef and Oil Basins are currently in dispute over Backreef’s interest in the project over unpaid cash calls and the deal is subject to conditions including the resolution of this dispute as well the termination of any existing agreements to sell the project elsewhere.
Rey Resources Limited
(ASX:REY) made a net loss of $3.3 million in the 2014 financial year.
