Eni SpA (E),
Italy
's
biggest energy company by market value, said Tuesday it signed an agreement
with MEO Australia Ltd. (MEO.AU) to farm in to the Heron and Blackwood natural
gas discoveries in
Northern Australia
.
In a statement, Eni said the deal involved the Rome-based company earning 50%
in the Heron gas discovery by funding the drilling of two wells in the area. It
may withdraw from the agreement after the first well has been drilled.
Eni has a further option to earn 50% in the Blackwood gas discovery by
acquiring a minimum of 500 square kilometers of 3-dimension seismic and
drilling one well in the Blackwood area.
Eni has a further option to acquire an additional 25% interest in the
discoveries by funding the work program required to reach a final investment
decision in either Heron, Blackwood or both. Once completed Eni would make a
one-off bonus payment to MEO.
The
company didn't disclose financial terms.