Norwest Energy has achieved the full farm-out of its 160 MMbbl Xanadu TP/15 prospect, off Western Australia, signing a binding term-sheet with 3C Group.
3C subsidiary, 3C Group IC Ltd., will contribute 40% of the well costs to earn a 30% interest in TP/15.
The deal also give 3C Group 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.
“Securing this funding for drilling costs has been pivotal in ensuring plans to drill this long-awaited well are finally realized,” Norwest said.
On 23 September 2016, Norwest inked binding term-sheets with Transerv Energy and Triangle Energy.
Norwest will remain operator of TP/15 and will retain a free-carried 25% interest in the Xanadu-1 well. 3C Group holds 30% stake, with Triangle holding 30%, and Transerv holding the remaining 15%.
In addition to funding 40% of the drilling costs of the Xanadu-1 well, 3C Group will subscribe for 208,333,333 fully paid ordinary shares in Norwest at an issue price of A$0.0024 per new share, raising approximately A$500,000.
Map of Xanadu, from Norwest.