Planet Gas updates on permit PEL 514 farm-out in SA to Origin, Senex

6/30/2014

Planet Gas updates on permit PEL 514 farm-out in SA to Origin, Senex

SYDNEY, Australia -- The Directors of Planet Gas Limited have reached an agreement with Origin Energy Limited and experienced Cooper basin operator Senex Energy Limited, relating to Planet Gas’ 20% interest in Area B of PEL 514.

Following the Origin/Senex Agreement, a new permit covering Area B (PEL 638) was excised from PEL 514 in which Planet Gas retained a 20% participating interest. PEL 638 is administered by two JVs; the PEL 638 Deeps JV and PEL 638 Shallows.

The PEL 638 Deeps work program is split into Stage 1 and Stage 2 with total expenditure of up to $80 million.

This agreement, combined with the initial agreement between Origin and Senex means that through Stage 1, Origin will earn a combined 33.75% interest (previously 30%) in the PEL 638 Deeps from Senex and Planet Gas.

Origin may increase its interests to 45% (previously 40%) upon the completion of Stage 2.

Senex will hold a 45% interest (previously 40%) by the end of Stage 2, which includes the further interest it will acquire from Planet Gas, while Planet Gas will reduce to a 10% free carried interest.

Senex will be the operator of the programs with Origin having the right to become operator following the completion of Stage 2.

The existing farm-in arrangements between Planet Gas and Senex with regards to oil exploration will continue in PEL 638 Shallows and PEL 514. Planet Gas’ 20% interest continues to be free carried by Senex for oil exploration.

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