Rey Resources Limited says that its wholly owned subsidiary company Rey Lennard Shelf Pty Ltd has completed the acquisition of a 50% participating interest in petroleum exploration permit EP487 from Backreef Oil Pty Ltd. The Company has also entered into a Joint Venture Agreement with Oil Basins Limited , holder of the remaining 50% interest, for the operation of exploration programmes on the Derby Block, located in the Canning Basin of Western Australia.
The Derby Block is a large exploration licence of approximately 5,000 km2 that was granted to Backreef (50%) and Oil Basins (50%) in 2012. It occurs to the north of Rey's existing interests in petroleum exploration licences the Canning Basin.
Managing Director Kevin Wilson said,'The acquisition of a 50% interest in the Derby Block extends the Company's footprint into acreage we consider prospective for both conventional and unconventional hydrocarbons. The Derby Block also has some of the best existing access infrastructure in the region, enabling relatively straightforward mobilisation activities. We look forward to working with Oil Basins to explore EP487.'