fairbridge-1 epe free carried Nice bit of cash saving for...

fairbridge-1 epe free carried Nice bit of cash saving for Enterprise:

Enterprise Energy NL (ASX code: EPE) through its wholly owned subsidiary, Traditional
Oil Exploration NL, has entered in to a mutually beneficial arrangement with Cooper
Energy Limited to farmout 10% interest in a sub block to be created around the northern
lobe of the Fairbridge Structure.
Cooper Energy will fund Enterprise’s entire portion of the drilling of the Fairbridge-1 well
to earn a 10% interest in this new sub block. This will result in a cost saving to Enterprise
of approximately $360,000 while still retaining 10% in the sub block area.
The arrangement also gives Cooper Energy an option to earn 10% interest from
Enterprise in the remaining area of PEL-100 by funding Enterprise’s share of a second
well. This will be financially beneficial to Enterprise as it will save an additional $360,000.
Enterprise will still retain a 10% interest in PEL-100 should Cooper exercise this option.
This farmout will strengthen Enterprise‘s capital position and will allow the company to
pursue new exploration opportunities in prospective areas, some of which are currently
under technical review. Hence, by reducing the commitment to PEL-100, Enterprise will
be able to participate in the drilling of more wells thus raising the chance of future
success.
For further explanation, please contact the undersigned at
Telephone; (08) 8231 4944
Email: [email protected]