The concessions – the petroleum exploration license 112 (PEL 112) and PEL 444 – cover 1,125,000 acres in the Western Flank oil play of the Cooper Basin.
The LOI is subject to several conditions including certain approvals and the execution of a definitive agreement.
The companies now plan to sign a definitive earn-in agreement in relation to Brandenburg’s right to earn the 44% working interest in the onshore blocks.
According to the Department of Primary Industries and Resources of South Australia, the Cooper Basin has sourced over four billion barrels of oil and five trillion cubic feet of recoverable gas.
The Birkhead, Hutton and the Namur sandstones are the primary target formations in both of the licensed areas, with the depth for the formations ranging from 1,500-1,800m.
