Xanadu-1 Farmout Finalised and Placement

Source Press Release
Company Norwest Energy NL3C Group IC LimitedWhitebark Energy LtdTriangle Energy (Global) Limited 
Tags Asset Deals, Deals, Upstream Activities
Date February 10, 2017
  • Norwest Energy finalises farm-out of TP/15 Permit
  • Xanadu-1 drilling plans accelerated
  • Share placement to TP/15 Joint Venture Participant to raise A$500,000
  • Strategic relationship with 3C Group IC Limited

Norwest Energy has entered agreements to achieve the full farm-out of its 160MMbbl 'Xanadu' TP/15 prospect.

Norwest has today executed a binding term-sheet whereby 3C Group IC Limited, through two of its wholly-owned subsidiaries (‘3C Group’), a Group incorporated in Guernsey will contribute 40% of the well costs to earn a 30% interest in TP/15. In addition, 3C Group will also have the right to participate in other wells in all the northern Perth Basin permits Norwest holds interests in on equivalent terms as the TP/15 farm-out.

The finalisation of this farm-out is considered an outstanding achievement for Norwest in the current market, and represents a major milestone for Norwest shareholders. Securing this funding for drilling costs has been pivotal in ensuring plans to drill this long-awaited well are finally realised.

As announced on 23rd September 2016, Norwest has already entered binding term-sheets with Transerv Energy and Triangle Energy. Pursuant to these existing term-sheets and the term-sheet now entered with 3C Group, Norwest will remain Operator of TP/15 and will retain a free-carried 25% interest in the Xanadu-1 well. Accordingly, the farm-out arrangements for the Xanadu-1 well are as follows:

Following the Xanadu-1 well being drilled, each of the parties will contribute to additional expenditure in proportion to their interests in TP/15.

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