Drillsearch Energy Limited has signed a binding term sheet with QGC Pty Limited ('QGC') over new terms covering their ATP 940P Cooper Basin Shale and Tight Gas Joint Venture in central Australia. Drillsearch owns 40% of ATP 940P and is the Operator. QGC owns the remaining 60%.
Under the original agreement announced in July 2011, QGC committed to a three-stage exploration and pilot production appraisal program of six wells to acquire a 60% interest in ATP 940P. QGC also agreed to fund $90 million of the first $100 million of that program.