The Mt Horner Oil Field [MHOF] is an oil production facility located in Production Licence L7 which is 350 km north of Perth and 20 km north east of the town of Dongara. The MHOF has been in care and maintenance since 2011. The terms of Key’s acquisition of L7 include an upfront payment to Key of $AUS380,000 . In addition, as much as $AUS 1.9 million will be made available for reimbursement to Key for rehabilitation costs at Mount Horner. Once the transaction is complete Key will assume operatorship of the field as well as all liabilities.
Key says the acquisition of the currently inactive Mount Horner field will enable any discoveries it makes in adjoining onshore permit EP437 to be potentially fast-tracked to development via the Mount Horner infrastructure in conjunction with the possible reactivation of production at Mount Horner itself.
Key expects to drill the exploration well Wye Knot-1 close to the boundary of L7 later this year. .
KEY Price at posting:
1.3¢ Sentiment: Buy Disclosure: Held
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