Rouge Rock has formally notified Melbana Energy of the exercise of its options to acquire a 45% participating interest in the AC/P50 and AC/P51 exploration permits in the Vulcan sub-basin off the North West coast of Australia.
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Map of AC/P50 and AC/P51, from Melbana. |
Melbana granted the option to Rouge Rock on 5 July 2016 in exchange for a free carry for Melbana on the costs of the committed work program for the 2016-18 primary term of each of the exploration permits.
The work program includes undertaking 3D seismic broadband reprocessing, merging of the Zeppelin and Onnia 3D seismic data and interpretation and mapping of the reprocessed seismic data and a suite of additional technical work, including pre-stack depth migration of the merged seismic data sets. The indicative value of the reprocessing work undertaken by Rouge Rock is approximately $1.15 million
The exercise of the farm-in by Rouge Rock follows its evaluation of the reprocessed data and the resulting suite of enhanced technical products, which are intended to further de-risk the identified prospects and leads, facilitating a potential further farm-out of the Permits to fund future discretionary exploration drilling.
Melbana and Rouge Rock intend to review recent drilling results in the area and integrate the results with the reprocessing work and then proceed to undertake a joint farm-out process during 2017-18.
“Rouge Rock has undertaken a substantial seismic reprocessing study, valued at over $1 million, through which Melbana has been free carried. The reprocessing has significantly improved the data quality in an area with historically poor data quality,” says Melbana Energy CEO and MD Peter Stickland. “The exercise of the options by Rouge Rock is a demonstration of the prospectivity in AC/P50 and AC/P51 and Melbana looks forward to working with Rouge Rock as we move forward to mature the identified prospects. The action Melbana has taken with AC/P0 and AC/P51 is consistent with its strategy of advancing the Company’s offshore permits at minimal cost while focusing on its world-class exploration opportunity in Cuba.”
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