Austin Exploration (ASX: AKK) is an oil and gas development company with assets in Australia and the United States.
inShare Email Austin Exploration to reveal farm-out Monday, July 29, 2013 by Proactive Investors
Austin Exploration (ASX: AKK) has some farm-out news to release, with the company currently in pre-open following the ASX granting a trading halt.
Austin has a portfolio of U.S. based oil and gas assets, and has a focus towards non-conventional shale exploration and production.
Earlier in the month Austin said that it was progressing the proposed farm-out of its wholly-owned Birch Prospect in Burleson County, Texas, and is in the final stages of completing a separate farm-out agreement.
At the time the company advised that due diligence for the Birch block farm-out has confirmed that all land titles are in good standing.
Regulatory checks are now being conducted on Austin’s Birch exploratory wells, in which Austin will be selling a 70% interest as a part of the farm-out package.
Under the farm-out agreement, the as-yet unnamed partner – a major U.S. oil and gas company - will fund 100% of the costs of the next three Eagle Ford wells to an estimated total cost of US$24 million to earn a 70% interest in the Birch Prospect.
This covers about 4295 acres with Austin retaining 100% of a 645 parcel of acreage.
The second farm-out agreement covers the remaining acreage, complete the 5,000-acre Birch farm-out program that will see Austin carried on four wells with a value of about US$32 million.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Wednesday 31st July 2013.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.
AKK Price at posting:
1.4¢ Sentiment: Hold Disclosure: Held
