Blue Energy Farms Into Nine NT Oil, Gas Blocks

Blue Energy has entered into farm in agreement with Australian Oil and Gas Limited for nine large oil and gas exploration blocks in Wiso Basin in Australia’s Northern Territory.

The proposed agreement involves a total area of 111,887 square kilometres (27.6 million acres) of the Northern Territory (NT). The Wiso Basin, located northeast of Alice Springs in the central Northern Territory, is relatively unexplored with, minimal exploration and stratigraphic drilling conducted in the basin margins, the company said.

Blue Energy’s Chairman, John Ellice-Flint, said “securing such a large dominant basin acreage position at this early stage of exploration in the Wiso Basin positions the Company ideally to take advantage of the high demand by global energy players for unconventional hydrocarbon acreage.”

Under the farm-in, Blue Energy will make upfront cash payment to cover back costs and fund a three stage work program to earn a 50% equity position in the nine permits.

Work in the first two years, from award of the permits, is estimated at $3 million.