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Key picks up Perth basin licence from AWE

Acreage contains the Horne oilfield which has been in a care and maintenance phase since 2010

Australian companies AWE and Key Petroleum have struck a deal which will see the former sell its 100% interest in production licence L7 (R1) in Western Australia’s Perth basin.

Key will make an upfront payment of about A$380,000 (US$297,479) for AWE’s subsidiary which holds the licence as well as reimburse AWE for rehabilitation costs up to an agreed amount of A$1.9 million.

The licence contains the Mount Horner oilfield which has been in care and maintenance since 2010 and had several wells decommissioned.

“Key is delighted to have executed this agreement to acquire L7, with a proven producible oil pool and material exploration upside which is consistent with our portfolio approach,” Key managing director Kane Marshall said.

“Recently we have re-mapped the northern part of the Perth basin and have not only identified prospectivity along trend from the Mount Horner oilfield, but also identified a much larger case for the undrilled Becos prospect down-dip from our current drillable Wye Knot prospect in EP437 and on trend from the Dongara oilfield spills into the adjoining L7 permit.”

He added the acquisition gave it the flexibility to commercialise potential future discoveries in both BP437 and L7, while noting that L7 had no work programme commitments.