EP 487 Permit
A subsidiary of the company Doriemus EP 487 Pty Ltd has executed a farmout agreement with a subsidiary of ASX Listed Rey Resources Limited (“REY”), whereby Doriemus will, once it satisfies the earning obligation as set out in previous announcements earn a 50% working interest and will be appointed the operator in the 5,058 km2 WA onshore block EP 487. Please refer to Figure 1 for location. Although the Farmout Agreement has now been executed, Doriemus must still satisfy earning obligations before it will be assigned the 50% interest in EP 487 from REY, at which point the parties have agreed the JOA (which comprises part of the Farmout Agreement) will become operational and govern the future relationship between the parties.
Exploration Permit Description and Butler Prospect
The block is considered to predominantly contain the Basin Centred Gas System (“BCGS”) in the Laurel Formation, which is regionally extensive throughout the Canning Basin, with major companies such as Mitsubishi and Buru Energy (“Buru”) also having operations further along trend in the area. Existing infrastructure in the area is extensive due to the operations at Mitsubishi’s Valhalla and Asgard gas field operations.
Butler Prospect in EP 487
The Butler undrilled exploration prospect is a regionally significant onshore conventional gas, condensate and oil prospect that straddles permits EP 487 and EP 129 in the northern Canning Basin. The Butler prospect is a large onshore stratigraphic trap that lies on the edge of the Lennard Shelf. The prospect is mapped on good quality 2D seismic data and this mapping demonstrates that the prospect principally overlaps two permits, EP 487 held 100% by Rey Resources with Doriemus farming in to earn a 50% interest, and EP 129 held 100% by Buru.
Subsequent to the identification and mapping of the prospect, ERC Equipoise Pte Ltd (“ERCE”), a globally recognised independent specialist resource assessment consulting group, were commissioned by two of the interest holders in the permits, Doriemus PLC (“Doriemus”) and Buru Energy Limited (“Buru”) to undertake an independent assessment of the prospective gas and liquids resources of the Butler prospect.