Melbana Energy has given further details regarding the farmout of its Beehive prospect in WA-488-P to Santos and Total, following the earlier announcement by Santos. Melbana Energy has executed a seismic funding and farmin option agreement with Total and Santos in relation to Melbanaâs 100% owned WA-488-P, which contains the giant multi billion barrel Beehive prospect. Â  The agreement provides for Total and Santos to fully fund 100% of the cost of a 3D seismic survey over the Beehive prospect* in consideration for which, they are granted an option (exerciseable together or individually) to acquire a direct 80% participating interest in the permit.Â  If the option is exercised, TotalÂ  and/or Santos will fully fund the costs of all activities until completion of the first well in the WA-488-P permit.Â  In the event of a commercial discovery, Melbana will repay carried funding from its share of cash flow from the Beehive field.Â  Melbana will have no re-payment obligations for such carried funding in the event there is no commercial discovery and development in WA-488-P. Â  The acquisition of a new 3D seismic survey over Beehive will provide potential for further de-risking of the prospect and will facilitate consideration of a preferred location for the Beehive-1 exploration well. Â  Planning for a 3D seismic survey has already commenced, with acquisition expected to commence mid-2018.Â Â  Â  * Subject to regulatory approvals and tendered cost of seismic acquisition being within an acceptable range Â  Melbanaâs CEO and MD Peter Stickland, commented on the announcement: 'Our longstanding belief that Beehive is one of the most significant oil and gas prospects in Australia, coupled with our continuing efforts to use the technical resources available to us to better define this prospect have been validated by the signing of this agreement with two world class companies in Total and Santos.Â  This transaction provides a pathway for Melbana to be fully carried for a 20% participating interest in the drilling of Beehive, with a firm commitment by Total and Santos to fund a 3D seismic survey, and then pre-agreed farmin terms for the drilling of a well in WA-488-P if either Total or Santos elect to proceed after the seismic data is acquired.Â  Â  Melbana welcomes Total and Santos as partners and we are excited by the opportunity to unlock the huge potential of the Beehive prospect for our shareholders.Â  We will now proceed to work with our partners to ensure the 3D seismic survey gets underway as soon as possible.'Beehive is adjacent to the Blacktip gas field and pipeline Click here for Santos announcement Original article link Source: Melbana Energy 
Australia (Petrel Sub-basin (Bonaparte B.)) Blacktip