Star Energy Group plc (2006)
Notes to the Financial Statements [extract]
26. Contingent liabilities [extract]
In relation to a farm-out agreement farmed into during the year with Virgo Energy Limited, the Group will undertake a feasibility study and in addition contribute up to 1,000,000 towards the cost of a 3D seismic survey on the Forbes field, a licence in which it has acquired a 25% interest. In addition to this 25% interest, the Group has an option to acquire a further 25% in return for undertaking and funding a Front End Engineering & Design study for the development of the Forbes field as a gas storage facility. As at 31 December 2006, the feasibility study had not commenced and no amounts had been paid to Virgo Energy Limited.