Vintage signs farmout deal with Sabre for Cooper Basin licence

Vintage Energy, a Sydney-listed exploration and production company, announced on April 22 the signing of a farmout agreement with Sabre Energy for an exploration licence in Cooper Basin, a privately held entity.

Under the agreement, Sabre will acquire a 50% interest in the South Australian Cooper Basin exploration licence PEL 679, pending grant approval. Vintage will retain the remaining 50% interest in the license following the completion of the farmout.

As part of the agreement, Sabre Energy will fund 100% of a 3D seismic survey and reimburse Vintage with A$200,000 for its share of costs incurred until the permit is granted.

Vintage secured the license through a successful bid in the 2019 South Australian gazettal round. The final award of the permit is contingent upon the completion of an appropriate land access agreement, with negotiations currently underway with the native title holders, the Dieri Aboriginal Corporation RNTBC.

Completion of the farmout work will fulfill the first-year work program requirements for the permit.