Xanadu Project Status Update

Source Press Release
Company Norwest Energy NL3C Group IC LimitedWhitebark Energy LtdTriangle Energy (Global) Limited 
Tags Asset Deals, Deals, Upstream Activities
Date May 30, 2017

Highlights

  • Farm Out Agreements executed 
  • Letter of Intent for Drilling Rig Services Issued
  • Third party services, approvals and consumables relating to Xanadu-1 being procured  

Farm-Out Agreements executed   

Norwest Energy NL (ASX:NWE) ('Norwest') is delighted to announce it has executed farm-out agreements (‘FOAs’) with  3C Group IC Limited (‘3C Group’),  Triangle Energy (Global) Limited (ASX:TEG) (‘Triangle’) and Transerv Energy Ltd (ASX:TSV) (‘Transerv’) to formalise the farm-out of its TP/15 permit, which includes the Xanadu prospect containing an unrisked recoverable resource of 160MMbbls (Refer Table 2)

The negotiation and finalisation of these FOAs has been ongoing since February 2017, when a binding term-sheet was signed between the parties. The terms of the FOAs reflect the February Term Sheet, whereby:   

  • 3C Group will contribute 40% of the Xanadu-1 well costs to earn a 30% interest in TP/15; 
  • Triangle will contribute 40% of the Xanadu-1 well costs to earn a 30% interest in TP/15; 
  • Transerv will contribute 20% of the Xanadu-1 well costs to earn a 15% interest in TP/15; and
  • Norwest will be free-carried through Xanadu-1 well costs (up to 110% of the agreed budgeted amount) and retain operatorship and a 25% interest in TP/15. 

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