- Quay Resources has advised IPB Petroleum’s (IPB) subsidiary that it will receive US$31 million (A$40.01 million) of joint venture funding in April
- The subsidiary, IPB WA 424P, is the titleholder and operator of a permit that spans 140,000 square kilometres in the Browse Basin, offshore Broome in WA
- IPB is farming out a 50 per cent interest in the permit to Quay in exchange for debt funding and for funding all for the costs for an appraisal well and a potential first stage development
- The appraisal well, to be called Idris-1, will test the up-dip presence of oil accumulation which was intersected in a well drilled by BPH in 1995
- Upon receipt of the first drawdown funds, IPB will appoint the environmental plan consultants, the well project management firm and apply to transfer a 50 per cent interest in the joint venture to Quay
- IPB has been trading 9.4 per cent higher at 3.5 cents
Quay Resources has advised IPB Petroleum’s (IPB) subsidiary, that it will receive US$31 million (A$40.01 million) of joint venture funding in April.
The Australian oil and gas explorer’s subsidiary, IPB WA 424P, is the titleholder and operator of a permit that spans 140,000 square kilometres in the Browse Basin, offshore Broome in WA.
IPB is farming out a 50 per cent interest in the permit to Quay in exchange for debt funding and for funding all for the costs for an appraisal well and a potential first stage development.
The appraisal well, to be called Idris-1, will test the up-dip presence of oil accumulation which was intersected in a well drilled by BPH Petroleum in 1995, the predecessor of BHP Billiton Petroleum (BHP).
Tranche A of funding will be drawn down progressively throughout April, with an initial US$5 million (A$6.45 million) to be received in the first week of the month.
The funding will be applied to back-costs, pre-paid interest and the full budgeted costs of the Idris-1 well.
Upon receipt of the first drawdown funds, IPB will appoint the environmental plan consultants, the well project management firm and apply to transfer a 50 per cent interest in the joint venture to Quay.
According to IPB, initial scoping works suggest the drilling of Idris could take place in March 2022.
The Tranche B advance of US$203 million (A$262.05 million) for stage one development costs will only be provided if the appraisal well is successful.
IPB has been trading 9.4 per cent higher at 3.5 cents at 12:02 pm AEDT.