These include a 25% interest in the Mungi and Harcourt gas fields and the Timmy and Lilyvale gas prospects, as well as Helm’s share of gas production at Mungi and its 50% interest in a compression unit.

In return, Molopo has agreed to pay $6 million cash and 30 million of its ordinary hares.

However, two of the permits – ATP564P and PL94 – are subject to pre-emptive rights held by Molopo’s JV partners Anglo Coal and Mitsui.

If they decided to exercise these rights, Molopo said it would adjust payment accordingly.

Should the transaction proceed, Molopo’s interest in the permits will increase to 50%, with its share of 2P reserves in the permits increasing by 80PJ to 160PJ.

“The acquisition of Helm’s interests in these permits, together with Helm’s share of production and infrastructure, allows Molopo to consolidate its interests in one of our core areas of operation,” Molopo managing director Stephen Mitchell said.

“With a greater equity interest in the region, the appraisal and development of the significant gas accumulations in the permits will be a major focus for our new technical team recently transitioned from BHP Billiton.”