Kairiki Energy has selected its preferred farminee party for entry into SC54A. The Party has been granted an exclusive 60 day period to finalise its due diligence review and complete and execute farm-out and associated agreements.

A condition of the farm-in negotiations requires the identity of the Party together with the terms of the farm-in agreement to remain confidential until the necessary farm-out documents have been executed.

The transaction contemplated will result in Kairiki reducing its interest in SC54A from 30.1% to 15.05% in return for a funded work programme involving drilling within the permit. Kairiki's expenditure commitments in SC54A in the short to medium term are therefore expected to be minimal.

Tags: Kairiki Energy Limited