Beach will acquire a 21 per cent equity interest in WA-359-P in exchange for a one-off payment to Cue of $900,000 for past costs, and future payments equating to 4 per cent of Cue’s cost of drilling the Ironbark-1 exploration well.
The agreement is subject to the following conditions:
- BP exercising its option to acquire a 42.5 per cent interest in the permit before the deadline of 11 December 2017
- Formation of a Joint Venture and associated Joint Operating Agreement with full funding for the Ironbark-1 exploration well
- Permit holders obtaining an extension to the current permit expiry date of 25 April 2018, to allow planning and drilling of Ironbark-1.
Assuming that all these conditions are approved, the ownership of WA-359-P would be BP (42.5 per cent), Cue (36.5 per cent) and Beach (21 per cent).