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KEY POINTS:
? Oil Basins Limited (ASX codes OBL, OBLOA & OBLOB) and Green Rock Energy
Limited (ASX code GRK) have executed a Heads of Agreement (HOA) relating to the
farmout of up to a 20% interest in the Backreef Area, Canning Basin, Western
Australia with an up-front Option Payment from GRK of $1.1 million.
? This will fund 100% of the Backreef-1 cased hole production test estimated at
$900,000 and thereafter GRK will contribute to it pro rata and, should GRK elect to
participate at 20% in the Backreef Area, GRK has agreed to contribute a further $2.5
million on future operations such as an Extended Production Testing of Backreef-1
and/or the drilling and completion of a second well or Backreef-2 appraisal or East
Blina-1 exploration well by 31 October 2012.
? If fully completed (as contemplated in the executed HOA with GRK), OBL is fully
funded in its present Backreef Area 2012 Work Program (Backreef-1 cased hole
production test and at least one additional exploration well by 31 October 2012).
? OBL will retain 80% net beneficial rights and operatorship of the Backreef Area.
? OBL will retain 100% of any benefits from a future Buru Energy Limited backin.
? OBL is pleased to welcome GRK as its new Backreef Area Joint Venture Partner and
the newest emerging junior Canning Basin oil and gas explorer.