Mineral Resources Limited (ASX: MIN) has reached a $1.1 billion agreement with Hancock Prospecting Pty Ltd on its oil and gas exploration ground.
MinRes and Hancock have executed a binding Sale and Purchase Agreement for MinRes to sell 100% of its Exploration Permits 368 and 426 in the Perth Basin to Hancock and enter two joint venture agreements over MinRes’ remaining onshore Perth Basin and Carnarvon Basin exploration acreage.
Under the agreements, Hancock will pay MinRes a total cash consideration of up to $1.13 billion.
As announced on 16 September 2024, MinRes has been reviewing options to best release value from its gas exploration ground in response to a number of inbound queries from domestic and global parties.
This transaction reflects the long-standing, value-enhancing relationship between MinRes and Hancock, two proudly Western Australian leaders in resource project development and operation who are together spearheading investment in the State’s future energy needs.
The transaction proceeds are payable by Hancock in cash and comprise:
- Upfront consideration of $804 million for EP368 and EP426, payable upon completion and subject to limited conditions precedent, including ministerial consents. Completion is expected by the end of 2024; and
- Additional purchase price adjustments of $327 million, subject to meeting certain resource thresholds and classifications for the Moriary Deep prospect and Lockyer gas and Erregulla oil discoveries. Definition drilling related to the purchase price adjustment for the Moriary Deep prospect and the Lockyer gas discovery are expected to be completed during FY25, with drilling of the Moriary-2 well to begin in November 2024.
MinRes Chief Executive Energy Darren Hardy said:
“MinRes and Hancock have a long history built on a strong relationship and I’m excited that we are again deepening our ties, this time in energy.
“This transaction maximises the value of our exploration success for shareholders and again showcases our ability to unlock significant capital from MinRes’ portfolio of assets.
“The new exploration joint ventures with Hancock in the Perth and Carnarvon basins immediately derisk and accelerate our future exploration programs across this highly prospective onshore petroleum acreage.”
