@azbo,thanks for your queries.MMR (or rather its investee,...

@azbo,

thanks for your queries.

MMR (or rather its investee, Advent Energy Ltd through Asset Energy Pty Ltd) has entered into an agreement with RL Energy Pty Ltd, whereby RL Energy can earn up to 60% in PEP11 by carrying Asset Energy up to $4m through a 3D seismic survey in PEP11.

RL Energy has since entered into an entirely unrelated agreement whereby SGC has the option to acquire all its shares. Intuitively, and assuming it is completed as proposed, SGC will then be liable for the agreement RL Energy entered into with Asset Energy. There is no relationship between SGC and MMR barring their (potential) respective shareholdings of entities who have entered into a farmin agreement for PEP11.

The ability to raise funds is speculative, though MMR's recent raisings have not been sufficient to support its investee to carry the costs of a 3D survey. Asset Energy will retain a very significant portion of a highly prospective basin, and will effectively be carried through to a quality drilling decision point.