Joint Venture announcements

THE BOURSE WHISPERER: They say that earning 50 per cent of a project is better than earning 50 per cent of no project.

Nido increases Participating Interest to 15 per cent in the Baronang PSC

Nido Petroleum (ASX: NDO) has, in accordance with the terms and conditions of the farm-in agreement with Lundin Baronang BV exercised its option to increase its participating interest in the Baronang Production Sharing Contract (Baronang PSC) from a 10% participating interest to a 15 per cent participating interest.

Nido further advised that on 21 February 2014 drilling at the Balqis-1 well location within the Baronang PSC reached the 13 3/8” casing point, at a depth of 768 metres Measured Depth (MD).

Once casing is set, Lundin will drill ahead through the Arang Formation to the planned 9 5/8” casing setting depth at or around 1,443 metres MD.

Senex and Origin Energy agree Cooper Basin gas farm-out

Senex Energy (ASX: SXY) and Origin Energy (ASX: ORG) have agreed to evaluate tight gas sands in key areas of South Australia’s southern Cooper-Eromanga Basin involving a work program of up to $252 million.

The parties have agreed a two-stage work program totalling $185 million with additional work program expenditure of up to $67 million, which is subject to operating committee approval.

The first stage will evaluate the potential of the tight gas sands, provide exposure to shales and deep coal seams, and provide proof of concept.

The second stage will evaluate the commerciality of the gas resource by undertaking extended flow testing through separate pilot programs.

“Origin has built an unrivalled position in the eastern Australian gas market and has access to international markets through its APLNG export facilities in Gladstone,” Senex Energy managing director Ian Davies said.

“Origin is a natural partner for Senex to accelerate the commercialisation of a potentially massive gas resource, especially given its long-standing position in the South Australian Cooper Basin Joint Venture.

“These agreements cover 40 per cent of the total area of PEL 514 and PEL 516, with Senex retaining its material interests to explore the remainder of these hydrocarbon rich permits.”

Termination of Yalanda Hill Joint Venture

Adelaide Resources (ASX: ADN) and Investigator Resources (ASX: IVR) have terminated the Yalanda Hill Joint Venture which was exploring three tenements on the eastern Eyre Peninsula of South Australia.
 
The Yalanda Hill Joint Venture was formed in 2009 and subsequent exploration included a systematic geochemical sampling program.

This program failed to identify anomalies of a size or quality that ranked favourably against targets that either company had elsewhere in their portfolios.

Consequently both parties agreed that their respective shareholders’ interests are best served by discontinuing funding of any further work on the Yalanda Hill Joint Venture.

At termination, Adelaide Resources’ equity in the Yalanda Hill Joint Venture was approximately 37 per cent and Investigator Resources’ equity approximately 63 per cent.
 
The three tenements that were subject to the Joint Venture are to be relinquished.

Joint Venture negotiations, Lumwana West, Zambia

Argonaut Resources (ASX: ARE) has agreed a non-binding term sheet with a financing partner for a proposed option and joint venture agreement for the exploration and development of the Lumwana West project in Zambia.

In the event negotiations are satisfactorily concluded and necessary approvals are gained, the proposed new joint venture will overlie the existing Lumwana West Joint Venture Agreement.

Shaw River increases Otjozondu manganese project shareholding

Shaw River Manganese (ASX: SRR) told the market that Otjozondu Holdings (Pty) Ltd, a wholly-owned subsidiary of Shaw River, has increased its shareholding in the Otjozondu manganese project from 84 per cent to 87.2 per cent.

Since early 2011, Oreport Holdings, the minority shareholder in the Otjo project, has elected not to fund its share of the project costs and Oreport has now again, elected not to exercise its right under the Shareholders Agreement to participate, pro-rata, in the issue of new ordinary no-par value shares in Otjozondu Mining, the holding company for the Otjo project.

As a result, Shaw River’s interest in the Otjo project has increased.

Shaw River through its subsidiary, Otjozondu Holdings, plans to fund all forward expenditure at the Otjo project by equity subscription via pro rata offers of equity by Otjozondu Mining (as has been done in this instance).

Should Oreport not participate in future pro rata offers of equity by Otjozondu Mining, Shaw River through its subsidiary, Otjozondu Holdings, will have the opportunity to further increase its interest in Otjozondu Mining and the Otjo project.