GREENPOWER Energy has sold its stake in an exploration permit in the Perth basin to Eneabba Gas for $850,000 as it shifts focus to a coal conversion project in Victoria.
Greenpower sold the subsidiary that holds the stake, GCC Methane, to Eneabba in late March, though the company will retain a stake in the area through a 1.5 per cent royalty interest.
The remaining stake in the EP 447 permit area, which contains the legacy Walyering gas field, is held by UIL Energy.
Eneabba Gas director Thomas Goh said at the time the deal was announced that the group had been reviewing early entry opportunities in the Perth basin, as well as those that provided an opportunity to add value through data acquisition.
“Our process of evaluation has focussed on permits that have large potential gas reserves, are close to infrastructure and can be quantifiably derisked,” he said.
“The addition to our portfolio of EP447 is consistent with our strategy of building a strong onshore domestic energy company.”
The permit area is also located 20 kilometres south east of the Ocean Hill project, which Eneabba agreed to acquire from Black Rock Mining – formerly Green Rock Energy – in November 2014.
Eneabba said the extension, to 15 July, had been given by the mutual agreement of both companies due to a native title negotiation process that took longer than the companies had expected.