13th Apr 2015 06:00
LONDON (Alliance News) - Argos Resources Ltd on Monday said it has entered into a farm-out deal with Noble Energy Falklands Ltd and Edison International SA to allow for exploration drilling at the PL001 licence in the North Falkland Basin.
Under the terms of the farm-out, Noble will take over operatorship of the licence from Argos, with Noble to take a 75% working interest in the licence and Edison to take the remaining 25%.
Argos will retain an overriding royalty interest of 5% of gross revenue from all hydrocarbon discoveries developed in the licence, it said.
Argos will be paid USD2.75 million in cash upon completion of the deal and USD800,000 per year from January 1, 2016 through to receipt of the first royalty payments from the licence. The payments are being made to reimburse any historic costs incurred by Argos in relation to maintenance of the licence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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