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CNOOC acquires stake in Exoma’s unconventional gas portfolio

Oilfield Technology,


Exoma Energy Limited yesterday executed a Farmin Agreement, in Beijing, with one of China’s leading integrated energy companies, China National Offshore Oil Corporation, through one of its subsidiaries in Australia (CNOOC).

Under the terms of the Farmin, CNOOC will acquire a 50% participating interest in Exoma’s exploration blocks located in the central Queensland Galilee Basin by contributing AU$ 50 million towards exploration and appraisal expenditure during the Farmin Period, expiring on 31 August 2013. Exoma has also granted to CNOOC an option to acquire 86.6 million ordinary shares of the company at 31.5 cents per share.

“CNOOC brings in not just the expertise, not just the money to help us with this project, but critically they bring us access to the market,” said Exoma Chairman Brian Barker. With this in mind, China is likely to be the main export market for any gas produced from the Exoma’s exploration blocks.

“With CNOOC’s involvement, Exoma will now accelerate its exploration programme for its Galilee Basin permits which Exoma believes host very large CSG and SG resources, with additional potential for conventional petroleum resources,” he added.

The Farmin agreement and the share option are conditional on the indicative approval of the Queensland Government and the Chinese Government.

CNOOC stated that, “CNOOC has the desire to be acquiring an interest in such a significant gas exploration area in Queensland which we believe has the potential to support one of the largest coal seam gas and shale gas projects in Australia. CNOOC believes this investment will benefit both parties.”

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/09122010/cnooc-acquires-stake-in_exoma%E2%80%99s_unconventional_gas_portfolio/

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