Leigh Creek Oil and Gas has signed an A$6.3m ($4.2m) farm-in agreement with Bridgeport Energy covering assets in the onshore Cooper-Eromanga Basin in Queensland, Australia.
New Hope Group subsidiary Bridgeport Energy operates a number of assets within the basin.
The farm-in will see Leigh Creek earn a 20% participating interest across two prospects ATP 2023 and ATP 2024 within the basin, which is considered as Australia’s most prolific oil and gas basin.
However, there is an option to acquire additional interest in the permits. Leigh Creek will need to fund 40% of permit activities in the first two years and 20% in the third and fourth years.
According to Leigh Creek Energy, the permits respectively cover 434km² and 421km² and are 10km away from the Jackson onshore oilfield.
The company noted that the permits are largely under-explored and comprise only two exploration wells and varying vintages of two-dimensional seismic.
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By GlobalDataLeigh Creek Energy managing director Phil Staveley said: “Leigh Creek Energy is pleased to enter its first joint venture partnership outside the Leigh Creek Energy Project (LCEP) with such a competent operator in Bridgeport.
“This partnership is complementary to the LCEP and will diversify our portfolio adding potential for multiple revenue streams.”
Bridgeport has already identified 15 leads, focusing majorly on the oil and gas plays of the Hutton Sandstone and the Toolachee formation.
The grant of the permits, however, is subject to the ministerial approval.
