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Tap Oil Ltd. entered into a binding agreement with Rusa Resources Pty Ltd. to participate in the exploration of a significant acreage position onshore Carnarvon Basin, Western Australia.
Rusa holds full equity ownership in two special prospecting authority applications, STP-SPA-018 and STP-SPA-021, with acreage options. The acreage options allow for the potential to convert up to 50% of the areas into exploration permits, subject to usual government and other approvals.
Tap will earn the right to take 20% interest in the resulting exploration permits on election, with an option to earn an additional 15% in each permit.
The acreage covers a total combined area of over 38,000 sq km, 9.5 million acres, and contains a large part of the Palaeozoic Merlinleigh Sub-basin, the entire Byro Sub-basin, plus associated shelfal areas. The exploration focus will be primarily on unconventional plays, with the main targets being Permian shale gas and Devonian shale oil. There is also conventional oil and gas potential.
The forward program will see Rusa and Tap undertake exploration work over the areas, including geochemical surveys, with the intention of delineating the preferred acreage for conversion to exploration permits in 2013.