Cue Energy Resources has agreed yet another extension to BP's 42.5% equity option over the exploration permit containing the Ironbark prospect offshore Australia.
The extension on WA-359-P, as announced on 13 October 2016, is now extended until 25 April 2018, with a further six-month extension available, under certain circumstances.
Ironbark is next to BP’s operated WA-409-B permit, less than 50km from the North Rankin platform (North West Shelf LNG) and near the Pluto and Wheatstone LNG infrastructure, which Cue says provides cost effective commercialization options.
The exploration permit term of WA-359-P currently expires on 25 April 2018. Cue says it intends to submit a suspension and extension application to the National Offshore Petroleum Titles Administrator (NOPTA) to allow new technical information to be incorporated into the Ironbark-1 well planning process.
On 29 Nov 2017, Cue announced an agreement with Beach Energy to farmout 21% equity in WA-359-P. Under the terms of the agreement, Beach will acquire 21% equity and free carry Cue for 4% of the cost of drilling the Ironbark-1 exploration well in the permit.
Beach will also reimburse Cue AU$900,000 for past costs. The agreement is conditional on BP exercising its option to acquire 42.5% equity in WA-359-P, Cue obtaining an extension to the current permit end date and other customary approvals.
Through the BP and Beach agreements, 75% funding for the Ironbark-1 well has been conditionally secured.