Australia's Lakes Blue evaluates superior offers for Otway Basin permit

Sydney-listed Lakes Blue Energy on April 18 said that the work towards the farm-out deal with Cooper Energy for exploration permit PEP 169 in the Otway Basin, Victoria, has been discontinued following the receipt of superior offers.

The company disclosed that it had recently received two separate unsolicited offers related to PEP 169. While the details of these offers remain confidential, Lakes Blue stated that they are materially superior to the previously proposed arrangement with Cooper Energy.

"In the interests of shareholders the company is now evaluating the new offers with a view to selecting and entering into a new arrangement as soon as possible,” Lakes Blue said. 

The farm-out deal with Cooper Energy was announced in October of the previous year. Under the terms of the agreement, Cooper was set to provide an upfront payment of A$1.2mn to Lakes Blue and fund Lakes' share of the drilling costs for the Enterprise North-1 well, up to a maximum cap of A$1.25mn. In exchange, Cooper would receive a 25.1% interest in PEP 169.

PEP 169 is currently owned by Lakes Blue (49%) and Armour Energy (51%) and includes the Enterprise North gas project.