- Metgasco has signed a farm-in agreement with Bridgeport, which controls several exploration projects the Cooper/Emoranga Basin in southwest Queensland
- As part of this agreement, Bridgeport can earn a 25 per cent non-operated interest in Metgasco’s own Cooper/Emoranga exploration licence, ATP 2021
- Bridgeport will fund $1.72 million in well drilling costs, and a potential $812,000 for future exploration costs
Energy company Metgasco has locked in a farm-in agreement with Bridgeport, which controls several exploration projects the Cooper/Emoranga Basin in southwest Queensland.
Metgasco, however, holds its licence in the Cooper/Emoranga Basin area, called ATP 2021. As part of this agreement, Bridgeport can earn a 25 per cent non-operated interest in ATP 2021. Bridgeport can earn the interest providing it funds 32.5 per cent of the first exploration well drilled, and 32.5 per cent of Metgasco’s share of future exploration costs related to ATP 2021.
Essentially, this will see Bridgeport fund $1.72 million of the $5.3 million exploration well drilling costs, and a potential $812,000 for future exploration costs.
Metgasco is expecting Bridgeport to make the payments by the first quarter of 2020 calendar year. While the agreement is subject to certain conditions, Metgasco is expecting it to be finalised by October this year.
Metgasco CEO Ken Aitken said the company is pleased to have piqued the interest of a company like Bridgeport.
“This farm-out to Bridgeport endorses Metgasco’s view that ATP 2021 has high exploration prospectivity and the potential to support material hydrocarbon discoveries and we look forward to drilling Vali-1 before the end of the year,” Ken said.
The ATP 2021 licence is a 370 square kilometre permit found on the Queensland side of the Cooper/Emoranga Basin. According to Metgasco, the area is highly prospective with drill-ready prospects having been identified by 3D seismic data.
Metgasco says within 20 kilometres of the permit boundary are oil and gas fields that have produced over 600 billion cubic feet of gas and 11 million barrels of oil.
Metgasco shares spiked soon after market open today, before dropping again and starting a steady climb. Shares were up 2.63 per cent to trade for 3.9 cents each at 3:54 pm AEST.