Herbert Smith Freehills has advised Darwin based Australian Oil and Gas Limited (AOG) in relation to a farm-out to Blue Energy Limited (BUL), of nine exploration permits located in the Wiso Basin, Northern Territory, Australia, a total area of 111,887 square kilometres or 27.6 million acres.
Under the terms of the farm-in, BUL will make an upfront cash payment to cover back costs incurred by AOG and fully fund the 3-stage work program to earn a 50% equity position in the permits.
The Wiso Basin is located northeast of Alice Springs in the central Northern Territory and is virtually unexplored. AOG and BUL believe that early exploration efforts, together with exploration activity on adjacent permits by other exploration companies, suggest significant hydrocarbon potential in the Wiso Basin.
AOG is an unlisted petroleum exploration company currently exploring for conventional and unconventional petroleum across ten basins located in the Northern Territory. With 285,000 km2 or 70 million acres of prospective ground, representing approximately 20% of the Northern Territory’s land mass, AOG has one of the largest underexplored holdings in Australia.
BUL is an ASX listed petroleum exploration and production company with over 110,000 km² of exploration acreage across nine different producing and prospective hydrocarbon basins in Queensland and the Northern Territory.
The Herbert Smith Freehills team was led by Sydney based special counsel Natalie Lonergan who was assisted by Brisbane based partner Kate Cahill and special counsel Jau-Shi Liew.
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