Rey to close in WA

Taking flight: Rey making its mark in North Perth basin

Australia-listed Rey Resources is now able to close a farm-in agreement after the operator of the Dunnart-2 well secured a drilling rig.

The company announced in May that it signed an agreement with Key Petroleum and Caracal Exploration to take a 43.47% interest in EP437 in the North Perth basin in Western Australia.

Rey will earn that interest by contributing 86.94% of the costs, which for the Dunnart-2 well is expected to be capped at $1.7 million.

Key received a formal land access agreement and signed a drilling contract for Rig 7 with Drilling Contractors of Australia on Friday.

Operations will start over the next few days, beginning with surveying of the well location and civil earthworks.

Formal government approvals will be received imminently according to the operator, with drilling on the Dunnart-2 expected to start soon after.

Spudding of the well is expected in July.

Key Petroleum is the operator of the permit and holds a 43.47% interest, while Rey holds a 43.47% interest with Caracal on 13.06%.

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