On 14 May 2018 Key Petroleum Ltd and Rey Resources Ltd reported that they had signed a sale and purchase agreement, which will see the companies acquire certain subsidiaries to complete an interest swap in permits EP 104, R1 and L15, located in the Canning Basin, and EP 437, located in the Perth Basin.Â  The deal remains subject to relevant authority approvals.  Under the terms of the agreement, Rey Resources is to acquire all the shares in Keyâs wholly owned subsidiary Gulliver Productions Pty Ltd. Rey Resources also reported that it had agreed to acquire Indigo Oil Pty Ltdâs share in the permits. This will give it 100% interest in the Canning Basin licences, which are referred to by the company as the âLennard Shelf blocksâ. As part of the deal in the Canning licences, Key Petroleum will receive a royalty of 2.5% and Indigo a 0.5% royalty in L15 and R1.  Key Petroleum will also acquire all the shares in Rey Resourcesâ wholly owned subsidiary Rey Oil Gas Perth Pty Ltd, which holds a 43.47% interest in exploration permit EP 437.Â Â  Key Petroleum already holds the same interest as the Rey subsidiary, so acquisition will double its holding in the permit, increasing it to 86.94%.Â  Pilot Energy Ltd holds the remaining interest in the permit.  Key Petroleumâs sale of its Gulliver Productions subsidiary sees its exit from the Canning Basin and it reports this deal will allow it to focus on the Perth Basin acreage.Â  The EP 427 permit contains the Wye Knot prospect, which is planned to be drilled in 2018 and is targeting potential resources of 1.4 MMbo.Â  The permit is adjacent to Keyâs L7 production licence, which contains the Mount Horner field.  Rey Resources has acquired licence to the north of its existing Canning Basin acreage. It hopes to farm-out some interest in the Lennard Shelf blocks. The licences are outlined as having conventional oil and tight gas potential.Â  L15 contains part of the Kora West oil field, while R1 contains the Point Torment gas discovery.
On 14 May 2018 Key Petroleum Ltd and Rey Resources Ltd reported that they had signed a sale and purchase agreement, which will see the companies acquire certain subsidiaries to complete an interest swap in permits EP 104, R1 and L15, located in the Canning Basin, and EP 437, located in the Perth Basin. 