Both Moby and Exoil are earning a 75% stake in the permit from Cue Petroleum, which holds a 25% carried interest to protect the back-in rights from original permit owner Australia Crude Oil Company.
Under the latest deal, the unnamed company, whose identity is to remain a secret until it exercises the option, would take a 50% stake in the Vic/P53 permit from Moby and Exoil.
The farminee has agreed to put $1 million into escrow while it examines existing exploration information and reports.
The funds would only be released to Exoil and Moby once the joint venture receives approval to extend the third year of the permit until October next year, by which time two wells are proposed to have been drilled.
If it exercises its option, the farminee will be assume operatorship of the permit and pay the partners a further $2 million, two-thirds of which would go to Exoil and the other third to Moby.
The farminee will also pay 100% of the costs to drill the two wells. Before spudding the first well, it will also be required to pay Moby and Exoil a further $US1.15 million.
The terms also provide for the farminee to immediately assist with well design and rig procurement.
Once both farm-outs are realized, the interests in Vic/P53 will be: the farminee (operator – 50%), Cue Petroleum (25%), Exoil (16.667%) and Moby (8.333%).