Carnarvon Petroleum Ltd. (ASX:CVN) has entered into new agreements with Apache Northwest Pty. Ltd. that secure additional funding for drilling activities on its highly prospective North West Shelf permits.
Apache has agreed to fund Carnarvon’s share of costs for the Phoenix South-1 well and the contingent Roc well, up to an increased cap of US$70m (gross cost per well). Carnarvon retains its 20% interest in the wells, which are contained within WA-435-P and WA-437-P, respectively.
Carnarvon and Finder Exploration Pty. Ltd. will grant Apache an option to acquire a 40% interest in WA-436-P and WA-438-P (20% from Carnarvon and 20% from Finder), for a nominal consideration to be exercised on or before July 3, 2014. Upon exercising the option, Apache will assume operatorship of these permits and Carnarvon will hold a 30% interest in each of WA-436-P and WA-438-P.