In a statement today, Pure said its cornerstone investor could earn up to 50% interest in Queensland permit ATP 831P in the Bowen Basin. This follows Arrow’s decision in October to take a half stake in Pure’s ATP 759P permit.
Under the latest deal, Arrow has agreed to spend at least $500,000 in the first year of the agreement to earn an initial 15% interest. The company could bring its holding up to 30% by spending a further $700,000 in the second year and a final 20% with expenditure of $800,000 in the third year.
Pure managing director Steve Beardsall said the company believed the synergy between its three tenements – ATP831P, 806P and 758P – comprised a “substantial and promising” area for CSM exploration.
“The further election by Arrow, who has proven success in CSM exploration and development in Queensland, to farm-in to ATP 831P is therefore very positive,” he said.
The southern border of ATP 831P lies about 45km north of Molopo Australia’s Mungi CSM field, while the Wallumbilla-Gladstone pipeline is about 30km south.
Exploration work will target the Rangal/Baralaba coal measures, which Pure says are high-rank seams and likely to contain high gas contents at depth.
About 60m thick, the coal measures are likely to contain four or five seams, with one seam measuring 3m in thickness, Pure said.
Three leads – Duaringa, Don and Baralaba – were previously identified in the tenement by Origin Energy in 2003.
With a 14% shareholding, Arrow is one of Pure’s largest investors.