Mako Energy, Transerv Energy and Tamaska Oil & Gas, as the Alberta Joint Venture (AJV), will sell an 80 per cent interest in parts of its Duvernay Shale gas and Rock Creek oil projects in Canada to a Canadian company for A$19.3 million.
A letter of intent signed with an undisclosed company will see the three Perth-based companies sell an interest in 30 sections of the acreage, while retaining full interest in 111 sections of the original land.
The money will be split with roughly $10 million to go to Mako, $7 million to Transerv, and $1.7 million to Tamaska.
Under the letter of intent, the joint venture partners will also be free-carried through the first two wells drilled on the Duvernay by the new partner.
The first well is to be drilled in 2012 at an estimated cost of $5 million, while the second well is to be drilled during 2013 with the AJV carried for the first $15 million of expenditure.
The partner further agreed to fund its pro rata 80 per cent share of a further horizontal well into the Rock Creek formation within two years or forfeit the Rock Creek rights to the AJV.
The AJV agreed not to disclose the name of the partner company, however described it as a new private venture, established and led by a senior industry team, each with long careers at a major North American oil company, and backed by significant North American private equity funds.
Transerv managing director Stephen Keenihan said the transaction realises significant value while enabling the joint venture partners to maintain exposure to the region.
“This transaction provides a strong platform for the company to advance its exploration and development activities in Australia and Canada,” he said.
Tamaska executive director said the transaction demonstrated the real inherent value in the company’s lead assets, improved the company’s cash position and provided a strong foundation to underpin the company’s ongoing activities in the oil and gas sector.
