Real Energy signs agreements with Santos and Beach Energy
Real Energy Corporation Limited (ASX:RLE) has executed binding agreements with Santos Limited (ASX:STO) and Beach Energy Limited (ASX:BPT) for gas processing at Moomba, and transportation and tie-in at Mount Howitt.
The promising gas processing agreement will allow raw gas from RLE’s Windorah Gas Project to be processed into sales gas, which can then be supplied to the east coast Australian market. STO and BPT have gas processing facilities at Moomba in South Australia.
Thanks to these agreements, RLE is one step closer to commercialising its flagship Windorah Gas Project, where an independent geologist has assessed that the 3C gas resource of the Project is some 672 billion cubic feet of gas.
The company has completed the well stimulation of Tamarama-2 and Tamarama-3 and will now establish flow rates upon the recovery of frac fluids.
The agreements are subject to certain condition precedents, which include RLE receiving all regulatory approvals, access rights allowing pipeline connections, entering unconditional gas supply arrangements and final investment decision. The commercial terms are confidential and in line with the MOU signed in May 2017.
“The signing of the gas processing agreement allows us to commercialise our gas without the need to build an expensive gas plant and other associated infrastructure,” RLE Managing Director Scott Brown said.
“These are significant agreements that potentially add considerable value to Real Energy not to mention the fact that these are major de-risking events for our project.
“Real Energy is very well-placed to take full advantage of the growing demand for Australian east coast gas, and these agreements, together with the upcoming flow rates Tamarama-2 and Tamarama-3, will build on the excellent results we have received to date at our 100% owned ATP927Peage. We look forward to moving our gas project into production.”
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