Offshore North West Australia, trailing interest in divested AC/P50 and AC/P51 permits
The AC/P50 and AC/P51 exploration permits are located offshore North-West Australia in the Vulcan Sub-basin adjacent to a number of oil and gas discoveries. The permit has an area of 583km2 .
Melbana sold its 55% interest in the permits to joint venture partner Rouge Rock Pty Ltd on 22 August, 2018 and retains exposure to further activity in the permits (see ASX Release 22 August 2018). The divestment agreements with Rouge Rock are structured such that if Rouge Rock enters into an arrangement in future for cash, Melbana earns 10% of the cash benefit received by Rouge Rock. If Rouge Rock enters into an arrangement in future that provides for a full or partial carry on a well, Melbana has the right to back-in for a 5% interest after the well is drilled, effectively providing a carried interest during the drilling process and avoiding costs associated with the drilling process.
Melbana is not responsible for any costs of the permit from the date of divestment.