Mitsui's wholly owned subsidiary Siam Moeco will take up a 100% stake in the concession and pay the two companies a total of US$8.5 million (A$8.2 million) upon the start of commercial production. Sun's share will be US$3.825 for its 45% stake in L20/50.
The start of production is defined as the earlier of either production exceeding 2,000 barrels of oil equivalent (boe) per day for a 30 day period or cumulative production of 100,000boe.
Siam will also pay a 2% royalty capped to US$10 million.
The farm out will allow Sun to focus on its Woodbine oil operations in Texas, U.S.
Siam plans to acquire 3D seismic next year and drill wells on L20/50 in later years.
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