RAMPART Energy has secured an 80 per cent working interest as operator of a newly released permit in the northern Carnarvon basin.
The company said the asset signified a change of strategy aimed at developing a new and balanced portfolio of exploration assets on appropriate commercial terms.
Block WA 507 P represents a long term, low cost opportunity with a potential upside for Rampart, it said in an announcment.
The permit is located off the North West Shelf of Australia, 300 kilometres offshore, in water depths of between 1,000 and 1,500 metres.
Existing 3D seismic data has confirmed the presence of a number of large structures in area ranging from 6,000 hectares to 28,000 hectares, potentially containing significant quantities of gas and condensate in the Triassic Mungaroo reservoir.
The permit carries a commitment to conduct three years of geological and geophysical studies, and license the existing 3D seismic data.
Drilling of a discretionary well is required by the sixth year the permit is held.
Rights to an 80% working interest were secured through an assignment agreement with an unrelated third party.
The company negotiated success-based payments to the third party and to the provider of existing seismic data, based on Rampart achieving project milestones, enabling the company to minimise the cost of entry to the asset and achieve an appropriate commercial structure with mostly contingent financial commitments.
Assignment of the 80% working interest to Rampart is subject to approval by the National Offshore Petroleum Titles Administrator and will be confirmed in due course.
Black Swan Resources holds the remaining 20% interest in the permit.