An affiliate of ExxonMobil Australia Pty. Ltd. agreed to obtain an initial 10% interest in an onshore Exploration License 4416 in the Gippsland basin of southeast Victoria, Australia, from Ignite Energy Resources Ltd.
The ExxonMobil affiliate is Esso Ventures LLC. During the next 12-18 months Esso Ventures and IER will jointly evaluate and assess the natural gas potential in the license’s coal seams to determine whether it can be commercially produced.
IER plans to operate the preliminary assessment phase. EL4416 covers more than 3,800 sq km. Financial terms of the agreement were not disclosed.
IER has offices in Melbourne and Sydney with an onshore resource portfolio and a lignite and biomass upgrading technology being demonstrated at its Somersby facility near Sydney.
Esso Australia Resources has operated the Bass Strait Joint Venture for more than 40 years.