Cooper: Farm-out agreements executed for the partial funding of Frey-1
Cooper Energy has advised that farm-out agreements have been executed to partially fund the Frey-1 exploration well being drilled by the PEL 93 joint venture in the South Australian Cooper Basin.
Frey-1 is being partially funded by Dunns Earthmoving and Metgasco under separate agreements, providing Dunns with entitlement to acquire a 15% equity in the licence section defined as the Frey-1 Area and Metgasco a 20% equity in the Frey-1 Area in return for funding 30% of the cost of drilling of the well, Cooper advised.
Cooper currently holds a 30% interest in the PEL 93 joint venture, with the balance held by operator Senex Energy.
“The company’s equity in the Frey-1 Area will reduce to 16% in the event that Dunn’s Earthmoving, Metgasco and the existing parties retain the Frey-1 Area after drilling Frey-1,” Cooper stated.