Warrego (ASX:WGO) to farm-out half of permit application to Mitsui

• Warrego Energy (WGO) agrees to farm out 50 per cent of working interest in its Perth Basin exploration permit application to Mitsui
• The permit application covers approximately 8,700 square kilometres covering most of the Coolcalalaya Sub Basin linking the northern Perth Basin with the Carnarvon Basin
• Mitsui will cover exploration costs for years one and two of around $1.5 million and will have the option to assume operatorship from year three
• Warrego says it has submitted a six-year conventional work program and budget to the Western Australia Department of Mines, Industry Regulation and Safety for review
• Shares in the company were to open trading at 11.5 cents

Warrego Energy (WGO) has agreed to farm out 50 per cent working interest in its STP-EPA-0127 exploration permit application to Mitsui, subject to approval.

The permit application covers approximately 8,700 square kilometres covering most of the Coolcalalya Sub Basin located to the north of the Perth Basin.

The company says the region covered is potentially the largest onshore exploration permit in the northern Perth Basin, covering an area 185 kilometres long and about 55 kilometres wide. This basin contains up to 9,000 metres of neo-proterozoic, palaeozoic and mesozoic sediment according to Warrego.

If the permit is approved Mitsui will cover exploration costs for years one and two of around 1.5 million dollars and will have the option to assume operatorship from year three.

Warrego says it has submitted a six-year conventional work program and budget to the Western Australia Department of Mines, Industry Regulation and Safety for review.

Additionally Native Title negotiations are reportedly at an advanced stage.

Shares in the company were to open trading at 11.5 cents.