Exoma Energy has moved a step closer to its acquisition of the Galilee gas project in Queensland, where it plans to spend $47 million on a four-year exploration program.
Exoma Energy has moved a step closer to its acquisition of the Galilee gas project in Queensland, where it plans to spend $47 million on a four-year exploration program.
The Exoma announcement is below:
EXOMA COMPLETES DUE DILIGENCE ON MAJOR QUEENSLAND GAS PROJECT ACQUISITION
Key points
- Exoma completes financial and technical due diligence for proposed acquisition of Galilee Gas Project in highly prospective Queensland Galilee Basin;
- Independent geological study supports resource potential to host combined gas in place of 35 Trillion Cubic Feet (TCF) of Coal Seam Gas (CSG), and Shale Gas (SG)*;
- Shareholder Extraordinary Meeting to vote on acquisition is scheduled to be held on 27 July 2009 (subject to final ASX approval); and
- Strong investor interest in Placement of 40 million Ordinary Exoma shares at A$0.05 per share to raise A$2 million.
Australian oil and gas exploration company Exoma Energy Limited (ASX: EXE) today announced it had received an independent geological study for the permit area relating to its planned acquisition of a 100% interest in the Galilee Gas Project in Central Queensland from privately-owned Longreach Number 2 Pty Ltd .
The Galilee Gas Project holds five contiguous Authorities to Prospect (ATP) - ATPs 991, 996, 1005 and1008 - in the highly prospective Galilee Basin. The permits, which cover an area of 26,840km², are in the final stages of the granting process by the Queensland Department of Energy & Mines. The transaction remains subject to the ATPs being granted.
The Galilee Gas Project has the estimated potential to host combined gas in place resources of 35 Trillion Cubic Feet (TCF) of Coal Seam Gas (CSG) and Shale Gas (SG)*.
Exoma believes the double objective of 'conventional' CSG and 'unconventional' SG makes the large contiguous Galilee Gas Project potentially one of the most significant gas exploration projects in Australia.
As a condition of the acquisition, Exoma commissioned GP and RJ McDonagh to complete an independent geological study of the permit area. The geologist's technical report, based on known data, supports Longreach's estimated resource potential* for the project. A full copy of the geological study is available on Exoma's website.
Exoma Managing Director David Rowbottam said receipt of the geological study was an important condition precedent and a major milestone to progress the proposed acquisition.
"All technical and financial due diligence has now been completed and the proposed acquisition will be put to our shareholders for their consideration at an Extraordinary General Meeting scheduled to be held on 27 July 2009, subject to final ASX approvals being received ," Mr Rowbottam said. While additional work is required to prove up the potential gas resource, the proposed purchase provides Exoma with rare opportunity to secure sufficient acreage in a highly prospective basin to support large scale gas and Liquefied Natural Gas (LNG) projects in Queensland.
"The Galilee Basin is one of the most sought after gas exploration addresses in Australia because of its potential to host massive coal seam and shale gas resources. If these resources can be defined there could be significant down-stream processing potential for both CSG and shale gas, including gas-fired electricity generation, conversion to LNG, fertiliser production (urea and ammonia) and emerging gas-to liquids technologies," Mr Rowbottam said.
* The potential gas in place estimates are conceptual in nature and additional work is required to define a contingent gas resource.
