Melbana Energy has agreed to a request by Santos and Total to extend the expiry of the options they hold to acquire a share in the Beehive-1 exploration well offshore northern Australia.
Santos and Total will receive a one-month extension to the expiry date for them to acquire a 40 per cent interest in WA-488-P in return for agreeing to jointly fund drilling of the Beehive-1 well.
The companies have confirmed that they have completed their technical assessment of the Beehive prospect. They require the extra time to finalise their commercial analysis and for internal approvals.
“The extension to the option period is not expected to impact the ability of the parties to drill the Beehive-1 exploration well before the end of the year, should Santos and Total elect to exercise their options,” Melbana reported in an ASX announcement.
Melbana has agreed to extend the option period by one month given the “significant and timely application” shown by Santos and Total in evaluating the Beehive prospect.
Santos and Total have until November 4 to notify Melbana of their decision in regards to the exercise of the options.
“Should Total and Santos elect to exercise their options, they would each receive 40 per cent interest in Melbana’s WA-488-P licence area in return for committing to jointly funding the cost of the Beehive-1 exploration well, in which Melbana would be free carried for its 20 per cent interest,” Melbana added.