Read this and it'll give you an idea!! Also bear in mind the limited available stock on market given the main shareholders hold the majority of shares!
Taranaki Basin permit!! Stated they should have an answer with regards to their application prior to the AGM on the 23rd of November.
Also recently released by the Company:
An aggregate 40% interest in each of the four permits is held by the Octanex Group and the Operator of all four permits is OMV Australia Limited. The permits were granted by the Designated Authority for and on behalf of the Commonwealth – Western Australia Offshore Joint Petroleum Authority on 22 June 2005 (re WA-362-P and WA-363-P) and 21 August 2006 (re WA-386-P and WA-387-P), all for a period of six years. They comprise a total of 457 graticular blocks or part thereof (approximately 37,795 km² or 9,339,350 acres in total) over the Exmouth Plateau offshore Western Australia Maps.
The permits are on the northern margin of the Exmouth Plateau, 300 to 400 kms north-west of the Western Australian coastline. The Exmouth Plateau is the largely unexplored deepwater frontier of the Carnarvon Basin, Australia’s largest petroleum basin, which includes the giant gas resources of the North West Shelf (Rankin Trend), the Greater Gorgon region and Io/Janz.
In August 2007, the relevant Octanex Group companies entered into four separate Joint Ventures (“JV’s”) with OMV Australia Limited (“OMV”) and ENI Australia Limited (“ENI”), one relating to each permit. The Octanex Group now holds an aggregate 40% interest in each of these permits and in their respective JV’s.
As part of the farmin arrangements whereby OMV and ENI acquired their initial interests and the JV’s were established, the Octanex Group companies agreed to assign a 60% interest in each permit, while retaining a 40% interest. For their part, OMV and ENI agreed to acquire and process sufficient 2D seismic data in each permit that would meet all the current and future seismic work obligations for the four permits. From the outset, OMV and ENI indicated their intention to comprehensively explore these four Exmouth Plateau permits and, to that end, they have acquired approximately 7,407 kms of new 2D seismic data, known as the Klimt 2D MSS. These data are currently being interpreted for the JV’s by OMV and by the other JV participants independently.
The next decision point for OMV and ENI is that by 1 January 2010 they must commit to the drilling of a well in any one of the permits or re-assign their entire 60% interest in all four permits back to the Octanex Group.
Under the terms of the farmin agreement, OMV and ENI also have the right to earn a further 20% interest in each permit from the Octanex Group companies by electing to commit to a well in a permit and agreeing to meet all the costs of the first two wells that they may elect to drill in that permit. This would leave the Octanex Group with a residual 20% interest in each permit where such a commitment has been made.
The final leg of the farmin arrangements provides that, if the Octanex Group does not wish to participate in a well (i.e. by being carried through its share of drilling costs) that OMV and ENI may elect to drill at their discretion on any one of the four permits, the Octanex Group has a right, exercisable within 60 days of receiving a formal notice from OMV and ENI of their intention to drill a well, to elect to assign their 40% interest in the relevant permit to OMV and ENI for US$16,000,000. This option is available to the Octanex Group in each of the four permits.
Now that's a lot of money!!
OXX Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
