- Sale of WA-488-P (containing the Beehive prospect) to EOG Australia completed
- Melbana confirms receipt of the Initial Purchase Price of US$7.5 million
- The WA-488-P permit has a commitment well required no later than 21 August 2023
- The Beehive Prospect has been assessed by Melbana to contain 416 million barrels of oil equivalent on a best estimate basis
Melbana Energy Limited (ASX: MAY) (Melbana) is pleased to report the completion of the sale of its exploration permit WA-488-P to EOG Resources Australia Block WA-488 Pty Ltd (EOG Australia). Melbana has received a payment of US$7.5 million from EOG Australia in consideration.
The terms of the sale agreement provide for EOG Australia to make Contingent Additional Payments to Melbana totalling US$5.0 million, subject to EOG Australia making certain future elections in regard to the WA-488-P permit area. In addition, Melbana is entitled to payments of US$10.0 million per 25 million barrels of oil equivalent (boe) that may be sold and delivered from within the WA-488-P permit area in future. Melbana has undertaken to not use any payments for any projects in Cuba.
The WA-488-P permit area contains the Beehive Prospect, estimated by independent reserves expert McDaniel & Associates to contain 388 million boe on a best estimate basis and as much as 1.6 billion boe. Melbana revised these estimates to 416 million boe (best estimate) and 1.4 million boe (upper estimate) following its assessment4 of the 3D seismic data acquired across the prospect in 2018.
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