Sacgasco has obtained an option to acquire a 100% interest in RL Energy , which provides the former with an option to purchase a 60% working interest in the Petroleum Exploration Permit PEP11 located in the Sydney Basin offshore Australia.
RL Energy had previously signed a farm-in deal with Asset Energy , which is the operator of the permit and holds an 85% interest.
Sacgasco will pay a $25,000 option fee and issue two million ordinary shares to shareholders of RL Energy, under the terms of the agreement.
RL Energy will receive $25,000 and four million Sacgasco ordinary shares, once the company exercises the option.
Sacgasco will also help RL Energy in filing an environmental permit (EP ) for carrying out a 3D seismic study and provide $326,000 in funding for the EP.
The option is due to be exercised by January 2019.
Sacgasco and RL Energy are both Australia-based natural gas exploration and production companies.
Ineos is currently carrying out negotiations with ConocoPhillips to purchase the latter’s North Sea oil and gas assets worth $3bn.
ConocoPhillips is divesting its North Sea assets and its interest in the Clair field located in the West of Shetland area to focus on its US Shale gas production.
Ineos is a UK-based chemical company, while ConocoPhillips is an American oil and gas exploration company.
Shearwater and Schlumberger signed an agreement for the purchase of the assets in August 2018. Shearwater paid $600m in cash to Schlumberger, while the latter invested $50m in Shearwater for working capital requirements.
The transaction will improve Shearwater’s geophysical services for the oil and gas industry.
Shearwater GeoServices is a subsidiary of Norway-based RASMUSSENGRUPPEN, a marine transportation services provider, while Schlumberger is a US-based oilfield services company.
The Philippines and Chinese governments have entered a memorandum of understanding (MOU ) to carry out oil and gas development in the South China Sea.
The MoU is expected to end the territorial dispute between the two countries over the South China Sea.
The development of the oil and gas reserves will be focused on the area located off the Coast of Palawan Island in the South China Sea.
China National Offshore Oil Corporation (CNNOC) and an authorised Philippines energy company will sign a development contract once the oil and gas exploration framework is completed.