Allens has advised Cue Energy Resources Ltd, through its 100 per cent subsidiary, Cue Exploration Pty Ltd, on farm-out and option arrangements relating to two exploration permits with BP Developments Australia Pty Ltd.
Cue has identified the Ironbark prospect, which straddles WA-409-P and WA-359-P located in the Carnarvon basin, as a significant drillable target.
Under the deal, BP will acquire an 80 per cent interest and become the operator of WA-409-P, as well as fund 100 per cent of the work required under the permit for the first three years of its renewal.
Cue has also granted BP an option to acquire a 42.5 per cent interest in WA-359-P. If BP exercises the option, which is valid until May 2017, 50 per cent of an exploration well will be funded Cue and BP will now look to secure another partner or partners to join them in drilling the Ironbark exploration well.
'Ironbark is an exciting prospect for Cue, which if proven and commercialised could be a transformational development for the company,' said lead partner Mark McAleer.
'As a long-standing client of the firm, we are delighted to have been able to assist Cue with this important transaction.'
Allens legal team
Mark McAleer – Partner, Perth; Miranda Hicks – Associate, Perth
Notes for editors.
Allens is a commercial law firm working throughout Australia and Asia. Through its integrated alliance with Linklaters it provides clients access to 40 offices in 28 countries around the world.