Energy Resources

Rey Resources has two petroleum exploration permits overlapping the majority of its coal leases, however the company will not conduct Coal Seam Gas exploration, other than testing required for safety purposes within the coal seam. The company has entered into a farm-out arrangement with a third party which gives the incoming party the right to earn a 90 per cent interest in any conventional gas and oil, through the expenditure of $4.85 million over five years. Rey Resources will retain rights to any gas recovered from coals (coal bed methane) together with the utilisation of any coal in any gas or liquid conversion process.

Rey Resources has signed an agreement with Uranium Exploration Australia Limited (‘UXA’) to enable UXA to explore for uranium at Myroodah in the Canning Basin. UXA can earn up to 80 per cent by spending $1.75 million on the two granted exploration licences, while Rey Resources retains all the rights to any coal on the leases. This allows Rey Resources to demonstrate additional value in its tenements, while it focuses on the development of the Duchess Paradise Project.  Under the agreement UXA are responsible for all appropriate clearances, approvals and rehabilitation required to undertake this exploration work.  Rey Resources does not intend to explore for or mine uranium.