Austin Exploration Limited has reached agreement with Adelaide Energy Limited for the accelerated acquisition by Adelaide Energy of a 50% undivided participating interest in the PEL 105 oil and gas licence, in the Cooper Basin in South Australia.

The parties have agreed to vary and update their existing 2007 farm-in agreement for PEL 105, under which Adelaide Energy had the right to earn a 50% interest in the licence upon completion of a farm-in work program, which included the drilling of one exploratory well.

Under the revised agreement, Austin and Adelaide Energy have agreed that the work program under the farm-in agreement has been satisfactorily completed by Adelaide Energy, which has undertaken extensive seismic surveys on PEL 105. Those surveys have identified the location in which the partners now intend to drill the Pirie #1 well.

In addition, Adelaide Energy has agreed to make a further cash payment of $250,000 to Austin Exploration to acquire its 50% interest in PEL 105.

This transaction clears the way for the joint venture parties to drill the Pirie #1 well within PEL 105, and to carry out all future activities on PEL 105. Under the JV agreement:

Tags: Austin Exploration Limited