Greenpower Energy (ASX:GPP) has entered into a binding heads of...

Greenpower Energy (ASX:GPP) has entered into a binding heads of agreement for an option to sell its 50% interest in Exploration Permit 447 in the Perth Basin, Western Australia, to Eneabba Gas (ASX:ENB).

This will allow the company to focus on its core coal conversion project in Victoria.

EP447 covers 3,000 square kilometres and contains the legacy Walyering Gas Field. The Dampier to Bunbury Pipeline runs through the Permit while recent and historic 2D seismic surveys have resulted in the identification of significant prospects.

Eneabba will pay a $30,000 non-refundable option payment for a 45 day exclusive period in which time Eneabba will complete its due diligence on the permit.

If Eneabba elects to exercise its option to acquire GPP’s wholly owned subsidiary GCC Methane, which holds the permit, it will pay a further $820,000 to Greenpower.

GPP will retain a 2.5% royalty interest on production.

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