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EXHIBIT 10.26
COMMONWEALTH OF AUSTRALIA
Petroleum (Submerged Lands) Act 1967
NOTIFICATION AS TO GRANT OF PERMIT OVER AREA V96-G2
I, PATRICK McNAMARA, the Designated Authority in respect of the
area specified as being adjacent to the State of Victoria acting
for and on behalf of the Commonwealth - Victoria Offshore
Petroleum Joint Authority have considered the application by -
MOSAIC OIL NL
11th Floor
15-17 Young Street
SYDNEY NSW 2000
EURO PACIFIC ENERGY PTY LTD
133 Edward Street
PERTH WA 6000
INDO PACIFIC ENERGY PTY LTD
249 Karori Road
Wellington
NEW ZEALAND
and I am prepared to grant an exploration permit for petroleum on
the application in respect of the blocks described hereunder,
being blocks within the abovementioned area, subject to the
conditions summarized hereunder.
In order to comply with the Act, the applicant should submit to
the Designated Authority, a request under Section 22(3) of the
Act.
The application will lapse if the applicant does not make a
request under Section 22(3) of the Act under which this
instrument is made in respect of the grant of the exploration
permit for petroleum.
Attention is drawn to the provisions of Section 22 of the Act
relating to the period within which a request may be made.
INTERPRETATION
In this Permit, "the Act" means the Act under which this Permit
is granted and includes any Act with which that Act is
incorporated and words used in this Permit have the same
respective meanings as in the Act.
DESCRIPTION OF BLOCKS
In the adjacent area of the State of Victoria -
269
MELBOURNE Sheet SJ55 prepared and published for the purposes of
the Petroleum (Submerged Lands) Act 1967.
A. BLOCKS
MELBOURNE MAP SHEET
BLOCK NO. BLOCK NO. BLOCK NO. BLOCK NO.
1992 2061 2062 2063
2064 2065 2066 2136
2137 2138 2139
Assessed to contain 11 blocks
CONDITIONS
1. (1) Subject to sub-clause (2), during a year of the term of
the permit set out in the first column of the following table,
the permittee -
(a) shall carry out in or in relation to the permit area, to a
standard acceptable to the Designated Authority, the work
specified in the minimum work requirements set out opposite that
year in the second column of the table;
(b) may carry out in or in relation to the permit area, to a
standard acceptable to the Designated Authority, all or part of
the work specified in the minimum work requirements of the
subsequent year or years of that term set out opposite that year
or those years in the second column of the table; and
(c) may carry out in or in relation to the permit area, to a
standard acceptable to the Designated Authority, work in addition
to the work specified in the minimum work requirements set out
opposite that year and in the subsequent year or years, if any,
of that term in the second column of the table.
(2) The permittee shall not commence any works or petroleum
exploration operations in the permit area except with, and in
accordance with the approval in writing of the Designated
Authority or of a person authorised by the Designated Authority
to give that approval.
(3) For the purposes of this clause, any work carried out in
accordance with paragraph (1)(b) shall, if the Designated
Authority in his discretion by instrument in writing so approves,
be treated as if it had been carried out in the subsequent year
or years of the term of the permit specified by the Designated
Authority in that instrument.
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Year of Term Minimum Work Estimated of Permit
Requirements in Expenditures
Constant Dollars
(indicative only)
First Data Review $ 250,000
Seismic Reprocessing
Second 500 Km 2D Seismic Survey 750,000
Third One (1) Well 6,500,000
Fourth Data Review 250,000
Seismic Reprocessing
Fifth 500 Km 2D Seismic Survey 750,000
Sixth One (1) Well 6,500,000
1A. During the first 3 year period of the term of the permit the
permittee must complete the work specified in the minimum work
requirements for the years in the period.
2. The permittee shall not recover any petroleum from the
permit area except as a result of production testing of a well.
3. The permittees shall not construct any installation or
install any equipment in the permit area except with and in
accordance with the approval in writing of the Designated
Authority or a person authorised in writing by the Designated
Authority to give that approval.
4. The permittee shall not abandon, suspend or complete any
well except with and in accordance with the approval of the
Designated Authority or of a person authorised by the Designated
Authority to give that approval.
5. In carrying out its operations in the permit area the
permittee shall take adequate measure for the protection of the
environment.
6. The permittee shall at all times comply with -
(a) the provisions of the Act and of any regulations for the
time being in force under the Act; and
(b) all Directions given to him under the Act or the Regulations
for the time being, in force under the Act.
7. It is a condition of this Exploration Permit for Petroleum
that the Permittee complies with the requirements of Section 97A
of the Act.
Dated at Melbourne this 25th day of June 1997
MADE under the Petroleum (Submerged Lands) Act 1967 of the
Commonwealth of Australia on behalf of the Commonwealth Victoria
Offshore Petroleum Joint Authority
/s/ Patrick McNamara
DESIGNATED AUTHORITY