“The interest comprises an 80% interest in two PELs, a 40% interest in another PEL together with various miscellaneous drilling and exploration equipment acquired from the Vendor,” AJL said this morning.

“A $500,000 deposit has been paid which is only refundable in the event that the transaction is not completed because of any default or failure by the vendor. The balance of the consideration payable is subject to formal due diligence, statutory consents and execution of formal documentation.”

AJL has revealed little else, especially about the prospective play types of the blocks or the name of the vendor company.

“The purchase of these PEL interests represents a complementary diversification of our business

Interests,” AJL managing director and CEO Russell Eggers said.

“Lucas has a successful track record of exploration for hydrocarbons in Australia having successfully developed and sold investments in the Gloucester Basin in New South Wales and in ATP651 in the Surat Basin.

“The investment also creates an opportunity to apply our drilling expertise as well as have a priority entitlement for the development of any associated infrastructure.”