Rey Resources (ASX:REY) has received Foreign Investment Review Board approval to farm-in to Key Petroleum’s (ASX:KEY) Exploration Permit EP437 in the North Perth Basin, Western Australia.
It will earn up to 43.47% in EP437 by contributing to 86.94% of the costs of drilling the Dunnart-2 exploration well to a cap of $1.7 million.
Operator Key has already formalised a Land Access Agreement and executed a drilling contract for Drilling Contractors of Australia’s Rig 7 to drill the well.
Commencement of operations will begin over the next few days with surveying of the well location followed by civil earthworks for the construction of the drill pad.
The Dunnart Prospect is a structural closure against a fault and is defined by seven seismic dip lines and one strike line. It has Best Estimate Prospective Resources of 2 million barrels of oil.0
The well is located up-dip from the historic Dunnart-1 well, with a planned drilling depth of 670 metres.
ASF Group (ASX:AFA) has a 19.9% stake in Key and 20.5% in Rey.
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