Grant of PEP 487 over the Derby Block
Octanex has been advised by Oil Basins Limited (Oil Basins) that the Department of Primary Industry of the State of Western Australia has granted the PEP 487, covering the Derby block, to Oil Basins and Back Reef Oil Limited
The 25% interest in PEP 487 which Octanex will acquire upon satisfaction of conditions precedent to its purchase agreement with Oil Basins is the first onshore acquisition made by Octanex and was motivated by Octanex’s perception of the high prospectivity of the Derby Block for unconventional oil and gas and coal seam gas.
Oil Basins has advised Octanex that the purchase agreement has been lodged for approval and registration as a dealing under the Act. Registration of the Purchase Agreement will provide Octanex with enforceable rights in relation to PEP 487.
Octanex considers that the Derby Block is potentially prospective for unconventional oil and gas from shales, as well as gas from coal seams, and there is particular attraction in the potential of the shale formation known as the Laurel Formation. In addition, there are a number of other formations which have potential for the discovery of conventional and unconventional