Blue Energy Limited has entered into a binding term sheet with Australian Oil and Gas Limited ('AOG') in relation to nine large exploration blocks in the Wiso Basin in the Northern Territory.

The proposed farm-in agreement - to be undertaken by a Blue Energy wholly-owned subsidiary - involves a total area of 111,887 square kilometres (27.6 million acres) of the Northern Territory (NT), an area approximately equivalent to the size of England.

Key Points:

111,887km2 (27.6 million acres) in area with conventional and unconventional oil and gas potential over 9 contiguous blocks Dominant basin position 3 Stage farm-in agreement 50% equity on completion of farm-in work program Blue Energy to become operator at commencement of farm-in Blue Energy's Chairman, Mr John Ellice-Flint, said 'securing such a large dominant basin acreage position at this early stage of exploration in the Wiso Basin positions the Company ideally to take advantage of the high demand by global energy players for unconventional hydrocarbon acreage. The relatively shallow nature of the potential marine Cambrian source rock sequence in the Wiso Basin, suggests that it would still be in the liquids maturation window and thus not a high cost deep drilling target as other shale targets elsewhere in the world can be.'

Tags: Blue Energy Limited