Join our daily newsletter At The Bell to receive exclusive market insights
- Finder Energy (FDR) signs farmout agreements with Dana Petroleum for licenses in the Central North Sea
- The new contract will see Finder assign Dana a 40 per cent interest in three licenses, conditional on regulatory approvals which are expected to be obtained within a month
- The deal comes with a $2.3 million price tag, with Dana also expected to make contributions to the forward work program on each licence
- Finder says the effect of the transactions extends its forecast cash runway by more than 12 months, and builds on its existing partnership with Dana which shares a license in the East Shetland Basin
- Finder Energy shares are 3.57 per cent to trade at 14.5 cents at 11:49 am AEDT
Finder Energy (FDR) has signed farmout agreements with Dana Petroleum for three licenses in the Central North Sea.
The agreements will see Finder assign Dana a 40 per cent interest in three licenses, P2527, P2528 and P2530, conditional on regulatory approvals which are expected to be obtained within a month.
Finder will retain the remaining 60 per cent interest and ownership in each of the licenses.
Through this, Finder will maintain the right to seek secondary farmouts and secure funding for wells, while retaining “meaningful levels of participation” in any discovery.
Dana said it will cough up a cash payment totalling £1.3 million (A$2.3 million) when the deal is complete.
Dana Petroleum also agreed to contribute to the forward work program on each licence. This will result in a reduction to Finder’s budgeted expenditure, ensuring Finder’s forecast cash runway will be extended by more than 12 months.
“Dana Petroleum’s like-minded exploration strategy, development and production capabilities, as well as ownership of proximal North Sea infrastructure, makes them a partner of choice for Finder…,” Finder CEO Damon Neaves said.
The new deal adds to Finder’s existing partnership with Dana, having already shared its P2502 license in the East Shetland Basin.
The company said the new transactions represents a “significant expansion” of the partnership, which maintains its focus on the Buzzard Oil Field.
Finder Energy shares were 3.57 per cent to trade at 14.5 cents at 11:49 am AEDT.
