South Perth-based Pure Energy Resources Ltd has announced plans to farmin with its major shareholder Arrow Energy NL on one of its largest Queensland coal seam gas tenements.
South Perth-based Pure Energy Resources Ltd has announced plans to farmin with its major shareholder Arrow Energy NL on one of its largest Queensland coal seam gas tenements.
The full text of a company announcement is pasted below
One of Australia's leading Coal Seam Gas corporations, Arrow Energy NL announced today its election to farmin into the CSG rights of Pure Energy Resources Ltd's Queensland tenement ATP 759P.
Pure Energy's Managing Director Steve Beardsall said the farmin with Arrow will assist in the development of ATP759P, one of Pure Energy's largest Queensland tenements (6,207 sqkm), and strengthens its strategic relationship with Arrow, one of Pure Energy's largest shareholders. The area is close to existing infrastructure and growing energy markets and adjacent tenements to the north are well established to be rich in both coal and CSG.
"Arrow brings proven Queensland development experience to the joint venture. It is a big step for Pure going forward", he said.
Arrow recently completed a merger with fellow Queensland based company CH4 Gas Limited to become one of Australia's largest independent corporations in that sector.
"Pure Energy's key objective is to add shareholder value through the discovery and development of commercial deposits of CSG. This means progressing our most promising assets to production as soon as possible whilst at the same time maintaining a balanced portfolio of exploration, appraisal, and development of assets including partnering through joint ventures so that Pure can continue to grow while generating revenue," said Mr Beardsall.
Under the Farmin Agreement, Arrow has an option to earn up to 50 per cent interest in the CSG rights in the tenement. Arrow must spend a minimum $400,000 in the first year of the agreement for which Arrow will be entitled to a 15 per cent interest. A further 15 per cent interest may be earned by Arrow spending a further $850,000 during the second year of the agreement and a final 20% (total 50 per cent) interest by spending an additional $200,000 during the third year of the agreement.
ATP759P is located in the Bowen Basin and is adjacent to established, commercial CSG projects such as Arrow/AGL's Moranbah Gas Project which is connected to Townsville by a gas pipeline and reputed to be Australia's largest coal seam gas producing project. The northern end of this project lies 40km to the west of ATP759P. Refer to Page 3-Combined Tenure Map of Arrow, CH4 and Pure Energy's tenements.
Arrow also has the option to farmin to one of Pure Energy's application tenements in Queensland-either ATP831P, ATP756P or ATP806P once their application is granted.
