Real Energy Forges Deal with Bow

Real Energy Corporation Pty. Ltd. has entered into a deal with Bow Energy Ltd to develop four blocks to prospect for conventional oil, shale oil and gas besides tight gas in the northern Cooper–Eromanga Basin in Queensland.

Real Energy which will become operator of the tenements comprising more than 4,500 sq km,plans to drill 6 wells in the next two years while the company is poised for a right to earn up to 50% equity in tenements.

The deal will make Real an operator of ATP 794, 809, 944 and 948PA, and drill up to six wells, with a minimum commitment of four, and obtain 500 kilometres of 2D seismic over a two year period.

Bow's 100% stake in ATP 809, 944 and 948A will be halved if Real meets the 2-year minimum work commitment while in ATP 794, it will see its interest reduced from 65% to 32.5%, with Real holding a 32.5% stake and Senex Energy holding the balance 35%.

The start of the deal hinges on Real raising sufficient capital by December this year, Bow said

“We are excited to farm into this tenement package with Bow Energy. We believe there is significant potential within the tenements and look forward to working with Bow,” Real chief executive Scott Brown said.

Formed by former Mosaic Oil executives Scott Brown and Lan Nguyen, following its takeover in 2010 by AGL Energy, Real Energy is an Australian unlisted oil and gas explorer with a focus on conventional and unconventional oil and gas resources.