Eni Signs Farm-In Agreement with MEO Australia

Eni Australia Ltd (Eni) has signed an agreement with MEO Australia to farm-in to the Heron and Blackwood gas discoveries in the Timor Sea located in northern Australia.  The agreement is subject to Australian regulatory approvals.

This agreement is in line with Eni’s aim to increase presence in Australia and South-east Asia through organic and acquisitive growth of quick to market hydrocarbon discoveries.

The agreement involves Eni earning 50% in the Heron gas discovery by funding the drilling of two wells in the Heron Area. Eni may withdraw from the agreement after the first well has been drilled.

Eni has a further option to earn 50% in the Blackwood gas discovery by acquiring a minimum of 500 square km of 3D seismic and drilling one well in the Blackwood area.

Eni has a further option to acquire an additional 25% interest in the discoveries by funding the work programme required to reach a Final Investment Decision (FID) in either Heron or Blackwood or both. Once completed Eni would make a one off bonus payment to MEO.

Eni Australia will be the Operator of the permit NT/P68 with a 50% share with its partner MEO Australia.

Sources: Eni, MEO Australia