Finder Exploration Pty Ltd. has entered a farm-out agreement that enables Shell Development (Australia) Proprietary Ltd. to earn a 50% interest and operatorship in an exploration permit for Petroleum AC/P 52, a news release said.

The permit is located in the Northern Browse basin and is north of the Poseidon major gas discovery and the approved Ichthys and Prelude developments.

The farm-out agreement provides that Shell will earn its interest in the permit through cash payments and funding a percentage of the drilling costs of the Cronus-1 exploration well in the permit up to an agreed cap, the release said.

The transaction is subject to various government approvals and registration. Participating interests in the permit will be Finder Exploration, 20%; Sasol Australia Petroleum Ltd., 30%; and Shell Development (Australia) Pty Ltd. (operator), 50%, according to the release.