Oz Rawson Inks Gas Sale MoU
Australian Rawson Oil and Gas said July 11 it has executed a non-binding memorandum of understanding (MoU) with Weston Energy to sell gas from the Nangwarry-1 exploration well in the Otway Basin, South Australia in the event of a commercial discovery.
“The MoU represents a significant step towards signing a binding gas sales agreement (GSA),” Rawson said. As per the MoU, Rawson will supply up to 4 petajoules/yr of gas to Weston Energy for a period of five years. “A future binding GSA is subject to a number of conditions, including success at Nangwarry-1 and Weston Energy finalising gas transportation arrangements,” Rawson added.
The MoU also provides for Weston Energy making a prepayment of up to A$6mn ($4.4mn), which will give Rawson additional financial flexibility to execute future field development activities. The MoU will allow Rawson to quickly convert any discovered resource into reserves and production.
According to Rawson, an independent petroleum engineering firm has assessed the best estimate prospective resources of the Nangwarry-1 prospect at 57bn ft3 of gas.