Oz Melbana Gets Greenlight to Survey Beehive Prospect

Australia-listed junior Melbana Energy has been given approval by the regulator for the environmental plan for the 3D seismic survey over its Beehive prospect in Western Australia, the company said May 23.

The survey is being operated by and funded by Santos with additional funding coming from French major Total.

The work is expected to commence in July and be completed before the end of August, Melbana said.

“We are pleased that we have been able to secure the environmental permit in sufficient time to enable the prompt acquisition of the Beehive 3D Seismic Survey. Our existing commercial arrangement with Total and Santos provides Melbana with the opportunity to explore this enormous prospect at no further cost to Melbana through to the completion of the first exploration well, which if successful, would be a game changer for our company, the region and its shareholders,” Melbana’s CEO Robert Zammit said.

Total and Santos have an option, exerciseable together or individually, to acquire a direct 80% participating interest in the permit in return for fully funding the costs of all activities until completion of the first well in the WA-488-P permit.

In the event of a commercial discovery, Melbana will repay carried funding from its share of cash flow from the field.

The operational area is in the Joseph Bonaparte Gulf, about 225 kilometres west-southwest from Darwin, it said.

Melbana says Beehive is potentially the largest undrilled hydrocarbon prospect in Australia.