Key Petroleum buys into Cooper basin in Queensland

Key Petroleum Ltd., Perth, has acquired 100% ownership of three exploration permits in the Cooper and Eromanga basins of southwestern Queensland from Drillsearch Energy Pty. Ltd., a subsidiary of Adelaide-based Beach Energy Ltd.

Key Petroleum Ltd., Perth, has acquired 100% ownership of three exploration permits in the Cooper and Eromanga basins of southwestern Queensland from Drillsearch Energy Pty. Ltd., a subsidiary of Adelaide-based Beach Energy Ltd.

The permits—ATPs 783, 920, and 924—were acquired for an immediate payment of $125,000 (Aus.) plus the grant to Drillsearch of a royalty equal to 1.5% of the wellhead value of all petroleum produced, saved, and sold from the areas.

The permits are south of the small inland oil field and north of the main Queensland Eromanga basin fields. The small refinery at Eromanga township lies to the east and a network of gas pipelines is in close proximity.

Key says the permits contain mapped oil and gas prospects delineated by recent 2D and 3D seismic programs.

They add significant value to the company’s portfolio of other interests, including permits in the Perth and Canning basins of Western Australia.

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