MELBOURNE, Australia – Melbana Energy has executed a seismic funding and farm-in option agreement with Total and Santos for the WA-488-P permit offshore Western Australia.
The 100% Melbana-owned concession contains the potential multi-billion-barrelBeehive prospect.
Total and Santos have agreed to fund 100% of the cost of a 3D seismic survey over Beehive, likely performed in mid-2018, and designed to further de-risk the prospect and assist planning for an exploration well.
In return, they would secure an option (exercisable together or individually) to acquire a direct 80% interest in the permit.
The farminee/s would then fund the costs of all subsequent activities until completion of the first well on the permit.
In the event of a commercial discovery, Melbana will repay carried funding from its share of cash flow from the Beehive field, but with no re-payment if there is no resultant commercial discovery/development.