apache buy into vic/p45

Announcement out near the close today. Sounds pretty good to me. Free carried interest for 1-2 wells. The quarterly report states there are a few large prospects here, it seems Apache agrees.

At a market cap of a tiny $6mill I think MOG will provide great leverage to any success.

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FARMOUT OF VIC/P45
Moby Oil & Gas Limited (ASX Code: MOG) (“Moby”) is pleased to advise that it and Exoil Limited (“Exoil”) have entered into a farmout agreement with Apache Northwest Pty Ltd (“Apache”) in respect to the offshore Gippsland Basin petroleum exploration permit Vic/P45. The farmout transaction is conditional upon all necessary approvals from the regulatory authorities.

Pursuant to the farmout agreement, Moby and Exoil will transfer an aggregate 66.6668% interest in Vic/P45 to Apache, reducing Moby’s interest to 16.6666%, with Exoil holding the remaining 16.6666%. In return for the transfer, Apache will meet 100% of the costs of the first well to be drilled in Vic/P45 and 100% of the costs of the second well to be drilled in Vic/P45, provided that Apache may withdraw from this commitment after drilling the first well by reconveying the whole of farmout interest (66.6668%) to Moby and Exoil. Any discovery location, as defined in the Petroleum (Submerged Lands) Act shall, at Apache’s discretion, be excised from any such reconveyance (should there be one).

In addition, Apache has undertaken to assume its share of royalty obligations to third parties.

Upon approval of the transaction by the regulatory authorities, Apache will become Operator of Vic/P45 and will, in conjunction with Moby and Exoil, select a drilling location for the first well. This well is planned to be drilled after a suitable rig can be procured.

Moby is pleased to have concluded this important agreement with Apache, which we see as a forerunner to an active drilling program in this attractive Gippsland Basin exploration permit.