MinRes agrees to $1.1 billion gas deal with Hancock

Mineral Resources (MinRes) reached an agreement with Hancock Prospecting on gas and oil assets in the onshore Perth and Carnarvon basins.

Hancock will acquire 100% ownership of MinRes Exploration Permits 368 and 426 in the Perth Basin, with two Joint Venture agreements established for the remaining onshore Perth Basin and Carnarvon Basin exploration acreage.

Hancock will pay MinRes an upfront consideration of $804 million and an additional price adjustment of $327 million, subject to meeting certain resource thresholds and classifications for Moriary Deep Prospect and Lockyer Gas and Erregulla Oil discoveries.

MinRes will operate exploration JV assets and provide exploration and drilling services, while Hancock will purchase 50% of the MinRes Explorer drill rig, mobile village, ancillary plant and equipment. Joint venture management committees will comprise equal representation between the parties.