EMPIRE Oil and Gas has signed an agreement to sell its remaining acreage in Western Australia’s onshore Carnarvon basin to Bounty Oil and Gas NL.
Rough Range Oil, a subsidiary of Empire which holds six Carnarvon basin tenements will be sold for a small cash sum and royalty based payments on future production.
Rough Range’s stake in the tenements ranges from 36 per cent to 90%.
The sale will enable Empire to focus on unlocking shareholder value in the company’s flagship assets located in the Perth basin, where it has the Red Gully Gas and Condensate project.
Empire said exiting from the Carnarvon basin allowed the company to focus all future drilling funds on the Perth basin, while retaining potential upside to exploration success and future production on the Carnarvon tenements through a royalty right.
Bounty chairman Graham Reveleigh said the agreement would see his company acquire not only Empire’s interests in those tenements, but also in the oil pool and production facilities at Rough Range and the gas pool at Rivoli.
“These tenements will be a valuable addition to the company’s portfolio, and may provide revenue in the near future,” Mr Reveleigh said.
The sale is subject to the execution of a share purchase agreement.