Kimberley secures exploration backing

Kimberley Oil has entered into an option agreement with Canada’s Golden Dynasty Resources which could see up to $3 million spent on Exploration Permit 129 and Production Permits L6 and L8, along with $500,000 on Kimberley’s Kolascai Oil Solidification Process.
Kimberley secures exploration backing Kimberley secures exploration backing Kimberley secures exploration backing Kimberley secures exploration backing Kimberley secures exploration backing

The agreement provides for Golden Dynasty to earn up to an 80% interest in Terratek Drilling Tools through the expenditure on exploration, research and development over 24 months. Terratek is a 100% owned subsidiary of Kimberley Oil and owns the permits. The oil solidification technology is owned by Kimberley Oil Remediation and will become a wholly owned subsidiary of Terratek.

The expenditure program includes the drilling of the Boundary Southeast development well located within the permits within six months from the exercise of the option. The permits included in the transaction represent approximately 7% of Kimberley Oil’s Canning Basin holdings and applications.

Within the Permits, Terratek also owns eight current producing oil wells and associated infrastructure with total annual production of approximately 27,000 barrels of oil.

Excluded from the transaction are the Broome tank and pipeline facilities which will remain wholly owned assets of Kimberley Oil.

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