Below information on cut is pasted from the from the last CTP Quarter Report.
Could indicate that there is a lack of convergence of "individual" interest in deciding on the direction of the drilling campaign. Should not mean much in the run of things. Just procrastination which is annoying.
FARM-INS / FARM-OUTS
Petroleum Exploration Australia Limited (“PXA”):
PXA continued as Joint Venture participants with a 20% participating interest to be funded at the 40% level in accordance with the terms of a formal farm-out agreement executed on 15 February 2008. The terms of the farm-out agreement include the funding by PXA of 40% of up to 3 wells and 40% of up to $3million of seismic for PXA to earn a 20% interest in the permits and permit applications operated by the Company. During the last quarter of 2008, all of the shares of PXA were acquired by the Queensland Gas Company Limited, now owned by the BG Group. It has been confirmed via public documents that a total of some $18.5 million was paid to PXA shareholders less c.$5 million which was paid directly to the Group to settle outstanding cash call amounts owed to the Group by PXA and further that the only assets bought with the purchase of PXA were the various farm-in arrangements and interests of PXA in the Group’s operated acreage.
PXA-Rawson Resources Limited-Merlin Energy Limited
PXA and Rawson Resources Limited (“Rawson”) continued as Joint Venture participants in the Simpson,Bejah and Dune Prospect Blocks within EP 97 owned by Rawson. The joint venture consists of Merlin Energy Limited (a wholly owned subsidiary of the Company) retaining a 65% interest in each block with Rawson being free carried for the first well in each block plus an initial 100 km of seismic in the Simpson Block to retain a 20% interest in each prospect block. PXA may retain a 15% interest by funding the initial works over each prospect block at the 22.5% level. The initial seismic and the first well in the Simpson Prospect Block has been completed by the joint venture resulting in the discovery of a significant residual oil column in the Poolowanna Formation. Negotiations are under way to allow the Joint Venture to drill a second well in the Simpson Block which will earn an interest in the Bejah Prospect Block instead of drilling the first well in the Bejah Prospect Block.
He Nuclear Limited:
He Nuclear Limited (“HEN”) has continued as Joint Venture participant with a 25% participating interest to be funded at the 50% level of exploration within the Mt Kitty (EP125) and Magee (EP82) Prospect Blocks. New seismic shot in the Magee area has produced some outstanding results which have enhanced the potential of the Magee Prospect Block. These results have been announced separately but include the potential of the Magee Prospect Block to host 1.4 TCFG and up to 15 BCFG Helium in UGIIP. The Mt Kitty Prospect Block has potential to host 3.0 TCFG and 180 BCFG Helium in UGIIP. It is anticipated that both the Mt Kitty and the Magee prospects will be drilled in the next drilling campaign subject to various contingencies. HEN is a privately owned unlisted company being developed under the auspices of Martin Place Securities, (“MPS”) a boutique Sydney based stockbroking firm specialising in the resources industry and is managed by Barry Dawes, the CEO of MPS.
Trident Energy Limited:
On 28 June 2007, Frontier Oil & Gas Pty Ltd signed a Memorandum of Understanding with Trident Energy Limited (“Trident”) whereby the privately-owned Melbourne-based oil junior will fund a $3 million seismic acquisition programme and the drilling of three exploration wells at the 20% level to earn a 10% interest in the Amadeus basin block EP 115. This agreement was formalised on 16th January 2009 via the execution of farmin and joint operating agreements with ancillary documents together with the payment to the Group of $550,000 representing 20% of previous expenditure within EP 115. Trident now joins the Group’s wholly owned subsidiary, Frontier Oil and Gas Pty Ltd and PXA, a wholly owned subsidiary of QGC, a British Gas Australia Company, in a joint venture for the exploration of this highly prospective property which hosts, inter alia, the Johnstone Oil Prospect, thought to host over 300 MMbbls of oil in UOIIP. On 23 February 2009, Trident Energy executed a similar farm-in agreement over EPA 111 on a 20% for 10% basis with essentially the same terms as the EP 115 (announced 16 January 2009) farm-in agreement. Trident is focusing on risk reduction through the application of leading-edge exploration methods to highgrade seismically-defined prospect portfolios, particularly in modelling petroleum systems and high-tech geochemistry, including the “GoreTM” technique.
CTP Price at posting:
7.6¢ Sentiment: Hold Disclosure: Held
