20/06/2006 - 14:39

Nuenco expands Californian interests with $6.7m acquisition

20/06/2006 - 14:39

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Subiaco based oil and gas explorer Nuenco NL has increased its exposure to the San Joaquin Basin, California, with the $6.7 million acquisition of a 50 per cent interest in private Canadian oil and gas exploration company Surf Petroleum Inc.

Nuenco expands Californian interests with $6.7m acquisition

Subiaco based oil and gas explorer Nuenco NL has increased its exposure to the San Joaquin Basin, California, with the $6.7 million acquisition of a 50 per cent interest in private Canadian oil and gas exploration company Surf Petroleum Inc.

The acquisition price will be half paid in cash and half under a convertible note.

Surf is an oil and gas exploration company which has been focussed on the San Joaquin Basin for more than four decades. Surf holds an option to explore and develop a massive land position that includes approximately 152,000 acres in the basin.

The company believes the acquisition will give it a 50 per cent interest in one of the largest acreage positions in the San Joaquin Basin in California with potential access to over 150,000 acres.

The company said it had been evaluating opportunities to expand its activities in California since becoming active there in 2004 with this transaction achieving that objective.

The company's shares were suspended from trading on the 14th June pending the acquisition announcement.

At market close, shares in Nuenco were at 2.3 cents.
In April the company looked to raise over $4.3 million to fund the testing, appraisal and development of Nuenco's South East Lost Hills oil and gas project and its other Californian interests.

In its prospectus, the company said its aim was to maximise the return on it's oil and gas exploration dollar.

 

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