Rouge Rock to take control of two offshore Australia permits
Melbana Energy has agreed to sell its subsidiary Vulcan Exploration to Rouge Rock.
Vulcan has a 55% operated interest in the AC/P50 and AC/P51 permits in the Ashmore Cartier basin off northwest Australia. Rouge Rock holds the remaining 45%.
The forward work program for the current permit year includes geological and geophysical studies, with interpretation and mapping of reprocessed inversion seismic data, while the next permit year starting in May 2019 carries commitments for an exploration well in each permit.
Under the agreement, Melbana will retain exposure to the upside outcomes of a subsequent sale or farm-out of either permits by Rouge Rock and would be entitled to 10% of any associated cash transaction.
Should Rouge Rock subsequently enter an arrangement in future that provides for a full or partial carry on a well, Melbana will also have the right to back-in for a 5% interest after the well is drilled.
This would effectively provide the company with a carried interest during the drilling process while avoiding the related costs.