Oil player Bounty Oil & Gas struggles to retain its 15 percent stakes in Petroleum Exploration Permit PEP 11.
After the market close on 15 November 2018, Bounty provided an update on its interest in PEP 11 Offshore Sydney Basin. The oil producer explained that it in discussion with the permit operator Asset Energy on several matters under the Joint Operating Agreement (JOA). The talks ponder around “the disputed cash calls and a potential variation to Bounty’s interest in PEP 11 going forward.”
Let’s understand what the matter is?
Broadly the issue revolves around the ownership of Petroleum Exploration Permit PEP 11, an exploration permit prospective for natural gas located in the Offshore Sydney Basin.
ASX Listed oil and gas explorer and producer, Bounty holds 15% interest in Petroleum Exploration Permit PEP 11 which is operated by private company Asset Energy Pty Ltd.
Asset Energy Pty Ltd is a wholly owned subsidiary of Advent Energy Limited. Through Asset Energy, Advent holds 85% interest in PEP 11 which is considered as significant offshore petroleum exploration region that potentially contains multi-tcf gas charged Permo-Triassic reservoirs.
But now there seems to be a dent coming in the partnership of Bounty and Advent for PEP 11. It’s because in mid-October the investor company of Advent, MEC Resources, informed that Bounty has been issued a notice to entirely withdraw its stakes from the PEP 11 permit “in lieu of default in payment of outstanding invoices.”
However, in response to this news, Bounty assured its investors that the company retains “15% registered interest” in the title and its interest under the Joint Operating Agreement (JOA).
PEP 11 Update
In the recently released progress report of PEP 11, Bounty unveiled the plans to undertake 2D seismic survey for Joint Venture PEP 11. This has included engaging acoustic modelling specialists, environmental consultants and geophysical expertise to complete the revisions to the Environmental Plan (“EP”) following a request for modification and re?submission received from the offshore regulator; the National Offshore Petroleum Safety and Environmental Management Authority.
The company further informed that following approval from National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), the PEP 11 Joint Venture will undertake the 2D survey at the earliest. An application for suspension and extension of the permit term remains pending approval from the National Offshore Petroleum Title Administrator (NOPTA) to maintain the title in good standing, the response for the same is anticipated shortly.
The Annual General Meeting of Bounty Oil & Gas NL is slated to be held on 27 November 2018 in Sydney. The stock of Bounty Oil & Gas NL (ASX: BUY) last traded at $0.004. Moreover, in the past one year the stock performance has witnessed a negative daily price change of 33.33%.
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