UPDATE ON BIVOUAC PEAK PROGRESS INCLUDING LEASE EXTENSION & ADDITION
- The Bivouac Peak coastal permit joint application has been submitted and is under review by both state and federal agencies
- Metgasco has exercised its right to participate in two new leases adjoining the existing Bivouac Peak lease
- The original Bivouac Peak lease has been extended for one year to accommodate anticipated permit approvals
Metgasco Limited (ASX:MEL) (Metgasco or the Company) is pleased to announce that it has elected to participate in two new leases recently secured by Byron Energy Limited (ASX:BYE) (Byron Energy) (see also BYE ASX release "Update on Bivouac Peak Permitting, Lease Extension and Additions" dated 26 February 2018). Louisiana State Leases #21778 (approx. 200 acres) and #21779 (approx. 130 acres) are peripheral, non-core tracts adjoining the existing Bivouac Peak lease. Metgasco elected to exercise its option for a 10% working interest in the additional leases in accordance with the participation agreement between Byron Energy and the Company.
The Company also advises that Byron Energy has successfully negotiated a one year extension of the existing lease for Bivouac Peak through to 1 September 2019.
Byron Energy, as the operator, has been progressing the permitting and well planning activities, including site specific survey work, pre-application geologic reviews and the submission of the joint application 'coastal use permit' to the Louisiana Coastal Management and US Army Corps of Engineers for review. Byron Energy has informed the Company that it anticipates the required permits to be issued in the second half of 2018 with a goal of beginning drilling operations in the second half of calendar year 2018.
Metgasco Chairman, Alexander Lang said:
"We are pleased with the good progress being made on Bivouac Peak, in particular working towards testing the Bivouac Peak East Prospect later in 2018. We are equally pleased to take the opportunity to participate in the additional leases adjacent to the existing lease in order to secure our ongoing working interest at 10% of the entire Bivouac Peak Prospect leases."
Alexander Lang, Executive Chairman
Phone: +61 02 9923 9100