Rawson Resources Ltd. has entered into a share purchase agreement (SPA) to increase its interest in Otway Energy to 100%. Rawson currently holds 37.5% in Otway, and Hardie Energy Pty. Ltd. holds the remaining 62.5% interest. Rawson will increase its interest in Otway Energy to 100% for the consideration of $1.76 million (AUD 2.0 million) and a royalty on future production.
The details of the production royalty are being finalized. Rawson will pay a nonrefundable $0.088 million (AUD 0.1 million) deposit on signing the SPA, with $1.67 million (AUD 1.9 million) due on completion.
The Otway permits are prospective for both conventional and unconventional exploration, and are located over depositional troughs for unconventional shale gas exploration.
Currently, Otway operates two exploration permits in the Otway Basin in South Australia: petroleum exploration licenses (PELs) 154 and 155.