Western Australian exploration company Red Emperor Resources on Tuesday announced that it had secured an option to acquire a 70% operated interest in a large offshore block in the shallow waters of the North Perth basin.
The company entered into a binding letter of intent with ASX-listed joint venture (JV) partners Pilot Energy and Key Petroleum to secure the option over exploration permit WA-481-P.
Red Emperor has agreed to fund the completion of an existing committed work programme, comprising geological and geophysical studies in the final year of the current permit term, for up to A$150 000.
Concurrently, the existing JV partners would apply for a renewal of the permit, which expired on February 19, 2020.
Red Emperor would pay the JV partners a collective A$500 000 for a 70% interest in the exploration licence, should the permit be renewed.
“We believe the WA-481-P block is predominantly oil prone, relatively shallow, and represents the western side of a large structural trend that onshore has seen recent, material discoveries,” said Red Emperor MD Greg Blandy.
He added that the company was well funded to take a position in this play, while continuing to evaluate additional projects that could provide near-term, high-impact drilling opportunities.