Eneabba Gas Ltd. (ENB), a Western Australian energy firm, has entered into a binding heads of agreement (HOA) with Greenpower Energy Ltd. for an option to acquire 100% of the issued capital of Greenpower’s wholly owned subsidiary, GCC Methane Pty Ltd.
GCC owns a 50% interest in Exploration Permit 477 (EP 477) in the Perth Basin, approximately 12.4 miles (20 kilometers) to the southeast of Eneabba’s Ocean Hill project.
ENB will pay a $23,472 (AUD 30,000) nonrefundable option payment for a 45-day exclusive period, in which time ENB will complete its due diligence on the permit. If ENB elects to exercise its option to acquire GCC (GCC’s only asset is EP 477), it will pay $641,568 (AUD 820,000) to Greenpower for 100% of the issued capital of GCC. The permit covers approximately 428 square miles (1,108 square kilometers) and includes the formerly producing Waylering gas field.