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- Melbana Energy (MAY) has pocketed almost $400,000 under the terms of sale of two exploration permits to Rouge Rock back in 2018
- Melbana previously sold its 55-per-cent interest in permits AC/P50 and AC/P51, which are located in the Vulcan sub-basin
- However, the terms of the divestment gave the company an interest in any future farm-out or sale
- Following Rouge’s recent sale of AC/P50 to ASX-lister Santos (STO) and SapuraOMV, MAY has received an upfront cash payment of around $397,000
- The purchasers have also acquired the right to buy AC/P51
- If they do so, Melbana would be entitled to a similar cash consideration and contingent royalties
- Melbana Energy shares are trading flat at 1.9 cents each
Melbana Energy (MAY) has pocketed almost $400,000 under the terms of sale of two exploration permits to Rouge Rock back in 2018.
Melbana previously sold its 55-per-cent interest in permits AC/P50 and AC/P51, which are located in the Vulcan sub-basin, to its joint venture partner.
However, the terms of the divestment gave the company an interest in any future farm-out or sale.
Subsequently, Rouge Rock has now sold permit AC/P50 to ASX-lister Santos (STO) and Malaysia-based SapuraOMV, which are set to acquire the permit through their respective subsidiaries.
As a result, Melbana has received an upfront cash payment of around $397,000, and is entitled to a 10 per cent share of any further royalty received by Rouge Rock for any potential production from the permit area during a defined period.
Further, the purchasers have also acquired the right to buy AC/P51 — a move that would entitle Melbana to receive similar cash consideration and contingent royalties.
Melbana Energy Executive Chairman Andrew Purcell commented on the sale of AC/P51.
“This transaction gives Melbana’s shareholders an interest in yet another exploration well — the fourth in a series commencing with the two wells in Cuba and finishing with this well and the one expected to be drilled next year into the Beehive structure,” he said.
Early in the session, Melbana Energy shares are trading flat at 1.9 cents at 10:46am AEST.
