UIL ENERGY will become operator of Exploration Permit EP 447 in the Perth basin in a joint venture with Greenpower Energy after deciding not to proceed with a farm-in deal.
UIL had earned its 50 per cent interest in the permit after completing a 2D seismic survey over the permit area, with Greenpower signing an agreement for the sale of its remaining 50% of the permit to UIL in September 2013.
Under the original farm-in agreement, UIL had the right to elect to carry out further work on the permit area in order to earn a further 25% stake.
With the company having decided not to do that, the proposed purchase agreement will lapse, Greenpower confirmed in a statement, meaning the two companies would operate as joint venture partners.
“The joint venture will proceed to comply with the development obligations under the Permit conditions,” Greenpower said in its announcement.