Business
Acquisition of 10% of Sasanof Prospect
Acquisition of 10% of Sasanof Prospect.
About this update from Clontarf Energy Plc
[{"type":"text","content":"\n \n \n Follow the link to read the press release in full, including figures: http://www.rns-pdf.londonstockexchange.com/rns/6935K_1-2022-5-8.pdf\n \n \n \n \n \n \n \n \n 9th May, 2022\n \n \n \n Clontarf Energy plc\n \n \n \n \n (\"Clontarf\" or the \"Company\")\n \n \n \n \n \n \n \n \n \n Acquisition of 10% of Sasanof Prospect, Offshore Western Australia\n \n \n \n \n \n \n \n \n \n \n \n \n \n The Directors of Clontarf (AIM: CLON) are pleased to announce that the Company:\n \n \n ·\n has\n acquired a 10% interest in the high-impact multi-TCF (Trillion Cubic Feet) Sasanof exploration prospect (located mainly within Exploration Permit\n WA-519-P\n ) through the acquisition of a 10% interest in Western Gas (519 P) Pty Ltd (\"WG519P\"), which wholly owns the prospect (the \"Acquisition\");\n \n \n ·\n plans to drill the main target horizon (the \"Sasanof-1 Well\") in this prospect during May/June 2022;\n \n \n ·\n The Acquisition consideration will be comprised of a cash consideration of US$4,000,000, and 100,000,000 ordinary shares of 0.25p each (\"Ordinary Shares\"), valued at £480,000 as at May 6th close. In the event of a discovery being declared at the Sasanof-1 Well, the consideration will be further increased by 150,000,000 Ordinary Shares, up to a maximum of £8.7 million, being 80% of the market capitalisation at May 6th close.\n \n \n Sasanof is a large, seismically defined, amplitude supported prospect in the Cretaceous Lower Barrow Group at a depth of 2,500m. It is an up-dip prospect from the liquids rich Mentorc Gas Field, previously discovered by Hess Corporation. Operator Western Gas has secured the Valaris MS-1 semi-submersible drill rig with drilling scheduled for May/June 2022 at an estimated cost of circa US$20 million (of which Clontarf is funding US$4 million), which is fully funded. In the event that the costs for the Sasanof-1 Well overrun, Clontarf will be responsible for 20% of a further $5 million. Thereafter costs will paid for on a pro-rata basis (i.e. Clontarf would need to contribute 10%). Any such further contributions from Clontarf would be made as a loan to be repaid from proceeds from any future production or the sale of the asset.\n \n \n The 10% interest is being acquired from Western Gas, which will hold 52.5% in the WG519P following the Acquisit...