3C Group has agreed to purchase 30% interest in Xanadu TP/15 prospect, which is located in the offshore northern Perth Basin of Western Australia.

Through two of its wholly-owned subsidiaries, 3C Group has executed a binding term-sheet with Norwest to provide 40% of the well costs to secure 30% stake in TP/15.

3C Group will also purchase Norwest’s ordinary shares at an issue price of A$0.0024 per share, which would be cost around A$500,000.

The farm-out also allows 3C Group to participate in other wells in all the northern Perth Basin permits of Norwest. The funding will help Norwest to advance the drilling plans for Xanadu-1 prospect.

In September 2016, Norwest also entered binding term-sheets with Transerv Energy and Triangle Energy.

Norwest will remain operator of TP/15 and retain a free-carried 25% interest in the Xanadu-1 well, based on the existing termsheets and the latest term-sheet with 3C Group.

Each of the parties will be contributed to additional expenditure in proportion to their interests in TP/15, following the Xanadu-1 well being drilled.

Norwest CEO Shelley Robertson said: “Norwest is incredibly pleased to welcome 3C Group to join us in the drilling of Xanadu-1. The funds raised from the placement will enable the Company to focus on ongoing exploration obligations, including the 3 well program across TP/15, EP368 and EP413.

“I am confident this partnership will develop over time into a valuable long-term relationship benefiting Norwest and all our shareholders. I look forward with great anticipation to the year ahead.”