ENI opts out of Heron area in Timor Sea

ENI opts out of Heron area in Timor Sea

MELBOURNE, Australia -- MEO Australia has reported that ENI Australia has elected not to drill an additional well on the Heron structure, and will therefore withdraw from the Heron area of NT/P68, approximately 300 km northwest of Darwin in the Timor Sea.

As a consequence, MEO will regain a 100% participating interest in the Heron area.

ENI has also elected not to increase its participating interest in the Blackwood area, and has advised that it intends to retain a 50% participating interest. The companies have agreed a process to negotiate certain amendments to the Blackwood area agreements to define the basis of the JV’s future activities on Blackwood.

The proposed amendments include agreement on the scope and commencement of Blackwood Development Studies, as required by the NT/P68 farm-in agreement, to determine whether the resources contained in the Blackwood area are commercial to develop.

The parties will also seek to agree a strategy for Blackwood area permit management beyond the current permit expiry on Apr. 26, 2015.