12/11/2008 - 13:26

WGP signs agreement with Oswal Resources

12/11/2008 - 13:26

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Perth-based Westralian Gas and Power has signed a title transfer and share sale agreement and a joint venture shareholder's agreement with Oswal Resources.

WGP signs agreement with Oswal Resources

Perth-based Westralian Gas and Power has signed a title transfer and share sale agreement and a joint venture shareholder's agreement with Oswal Resources.

A new joint venture company, Oswest Energy has been formed which is 75 per cent owned by Oswal Resources and 25 per cent owned by WGP.

WGP, an energy exploration company, in an agreement with Mr Pankaj Oswal's Oswal Group will explore strategic energy opportunities, including coal exploration and coal seam gasification, in WA.

WGP chairman, Peter Briggs said that the move signaled the beginning of involvement by key industrialists in the emerging economy of India in the Australian energy sector.

WGP now has joint venture agreements covering all its onshore petroleum leases from Geraldton to Augusta, including coal leases in the Collie region. Jointly with Roc Oil, WGP is also engaged in offshore Perth oil and gas exploration.

 

 

Full announcement below:

 

NEW AGREEMENT SIGNALS EXCITING INDIAN INVESTMENT IN THE WA ENERGY SECTOR

India has become a significant player in Western Australia's energy industry, Westralian Gas and Power Chairman Peter Briggs said today on the signing of a new joint venture agreement with Mr Pankaj Oswal's Oswal Group.

He said that the move signaled the beginning of involvement by key industrialists in the emerging economy of India in the Australian energy sector.

"Traditionally, investment in Australia's energy sector has come from the USA, Japan and Europe but this is a signal that Indian investors are keen to develop new energy supplies in our country," he said.

Mr Briggs said that Westralian Gas and Power ("WGP"), is a Perth based diversified energy exploration company which has developed considerable expertise in exploration for oil and gas, coal seam methane and coal.

He said that WGP had completed and signed a title transfer and share sale agreement and a joint-venture shareholder's agreement with Oswal Resources Pty Ltd.

Mr Briggs said that it was the most significant investment in the State's energy sector yet made by an Indian conglomerate.

A new joint venture company, Oswest Energy Pty Ltd has been formed which is 75 per cent owned by Oswal Resources Pty Ltd and 25 per cent owned by Westralian Gas and Power.

Oswal Resources Pty Ltd is the family owned resource investment company of Mr Pankaj and Mrs Radhika Oswal and is part of Oswal Group Global (Oswal Group), a diverse group of companies with interests in petro chemicals, property, shipping, energy as well as engineering and construction. It is currently evaluating and developing projects in the Middle East, Asia, Australia and the Americas. Oswal Group is well known for promoting and constructing the Burrup Fertilisers plant, a multi billion dollar facility producing liquid ammonia on the Burrup Peninsula, near Karratha.

"At this stage, we are looking at the domestic energy market, but we are aware that technologies such as as coal seam gasification are unexploited in Western Australia and this State is well placed to supply emerging energy markets such as India," said Mr Briggs.

He said that rising global energy costs may make many previously uneconomic coal reserves in Western Australia suitable for export.

Westralian Gas and Power now has joint venture agreements covering all its onshore petroleum leases from Geraldton to Augusta, including coal leases in the Collie region. Jointly with Roc Oil, WGP is also engaged in offshore Perth oil and gas exploration.

Mr Briggs said that the agreement with the Oswal Group gives WGP financial stability in the years ahead to thoroughly explore all its leases.

WGP has free carriage to bankable feasibility study on all its projects. If WGP is unable to finance its 25 per cent development and production costs, then it will be fully funded by the Oswal Group with repayment out of production revenues. This joint venture considerably reduces the Company's overheads and commitments and provides also for reimbursement over three years of the company's previous exploration costs of up to $2.5 million.

The new agreements mean that WGP will again be actively conducting seismic studies of its coal and petroleum leases including coal seam gas and conventional oil and gas exploration. It will also be evaluating the feasibility of underground coal gasification.

The company is awaiting details on new State Government regulations for underground coal gasification and it plans to develop the extensive resources available once the legislative framework is finalized.

 

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