Orca Sells Unconventional Gas Assets to Senex

Orca Energy has agreed to sell its 20% participating interest in South Australian petroleum exploration licence PEL115 to Senex Energy in exchange for a package of benefits worth approx. $7 million that includes free carry for oil exploration and development in the southern Cooper Basin.

Under the terms of the agreement with Senex, Orca will retain its 20% interest in two key assets within PEL 115, namely the Fury oil discovery and the Burruna-1 oil exploration well.

The parties will apply for a separate licence for the Fury and Burruna blocks, which will be known as the Fury Joint Venture and operate under the terms of the existing PEL 115 joint venture (Senex 80% and Operator, Orca 20%).

The sale will leave Orca with a cash position in excess of $3m and free carried for all of its Cooper Basin activities for the next 12 months.