27/06/2008 - 10:37

Comet Ridge divest $7.3m worth of assets

27/06/2008 - 10:37

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Mt Pleasant-based oil and gas explorer Comet Ridge Ltd has divested its United States projects worth $7.3 million, in a deal with New York-based equity capital firm Pine Brook Road Partners.

Mt Pleasant-based oil and gas explorer Comet Ridge Ltd has divested its United States projects worth $7.3 million, in a deal with New York-based equity capital firm Pine Brook Road Partners.

Under the arrangement, Comet Ridge will acquire a 43.75 per cent stake in newly formed US-based company Comet Ridge Resources LLC, while the remaining interest will be held by Pine Brook.

Pine Brook has contributed $7.3 million in cash and the Rocky Mountain assets it had previously acquired from Perth-based Strike Oil Ltd for $2.1 million.

Perth-based Comet Ridge said its US-based management and staff of Comet Ridge USA Inc, a wholly owned subsidiary, are now employed by the new spin-out company.

Below is the Comet Ridge announcement

The Board of Directors of Comet Ridge Limited (ASX Code: COI) is pleased to advise that the previously announced
transaction with New York based private equity capital firm Pine Brook Road Partners, LLC (Pine Brook) closed today, June 26, 2008.

The transaction involved Comet Ridge Limited contributing its US projects with a US$7,000,000 value in return for a 43.75% equity interest in newly formed Comet Ridge Resources, LLC. Pine Brook contributed US$7,000,000 cash and the Rocky Mountain assets of Strike Oil Limited (ASX Code: STX) that it had previously acquired for US$2,000,000, for its 56.25% equity interest.

The management and staff of Comet Ridge USA, Inc., Comet Ridge Limited's 100% owned US subsidiary, are now employed by Comet Ridge Resources.

The capital now available to Comet Ridge Resources will be put to work immediately with drilling due to commence on the Florence project this weekend. Xtreme Coil Drilling Corporation's Rig 4 due on location later today.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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