Statoil revealed last month it had entered a farm-in agreement with Canada’s PetroFrontier covering exploration permits 103, 104, 127 and 128 in the Southern Georgina basin in the Northern Territory. The agreement also covers PetroFrontier’s pending exploration permits in the basin, 218 and 252.
PetroFrontier said approval by the Foreign Investment Review Board was the final condition of the farm-in agreement. “We are thrilled that this final condition precedent has been met,” said PetroFrontier president Paul Bennett.
“The exploration of our large acreage position in this unconventional resource play will require extensive capital and technical capabilities, both of which Statoil brings to our joint venture. Their involvement will enable our company to develop this massive potential hydrocarbon resource.”
Under the agreement Statoil has initially committed USD25M to the first phase of exploration over the permits, but that figure could rise to USD200M in the second two phases depending on results.
Statoil will hold an initial 25% interest in the four permits but has the option to operate the second phase and increase its interest up to 65%.