Leigh Creek Oil and Gas has signed an agreement with New Hope Group subsidiary Bridgeport Energy to acquire stake in assets in the onshore Cooper-Eromanga Basin in Queensland, Australia.
Under the A$6.3m ($4.2m) farm-in agreement, Leigh Creek will earn a 20% participating interest across two prospects Authority to Prospect (ATP) 2023 and ATP 2024 within the basin, which is claimed to be Australia’s most prolific oil and gas basin.
Bridgeport Energy operates a number of assets within the Cooper-Eromanga basin. The assets considered for acquisition are expected to complement Leigh Creek’s portfolio.
The deal also provides an option to Leigh Creek to acquire additional interest in the permits.
Leigh Creek to fund 40% of permit activities in the first two years
As per the terms of the agreement, the company will fund 40% of permit activities in the first two years and 20% in the third and fourth years.
Leigh Creek Energy managing director Phil Staveley said: “Leigh Creek Energy is pleased to enter its first joint venture partnership outside the Leigh Creek Energy Project (LCEP) with such a competent operator in Bridgeport.
“This partnership is complementary to the LCEP and will diversify our portfolio adding potential for multiple revenue streams.”
Located in 10km away from the Jackson onshore oilfield in South West Queensland, the ATP 2023 and ATP 2024 permits cover 434km² and 421km², respectively.
Leigh Creek said that the two largely under-explored permits comprise only two exploration wells and varying vintages of 2D seismic.
The firm said in a statement: “The Company’s preferred option was to also engage with operators looking to farm down portions of their assets.
“LCK focussed on assets in working petroleum systems, containing both oil and gas prospects with the operator having significant operational experience in those Basins. LCK identified Bridgeport’s ATP 2023 & ATP 2024 as asssets meeting these requirements.”
Bridgeport has already identified 15 leads that focus majorly on the oil and gas plays of the Hutton Sandstone and the Toolachee formation.
