Exoma Energy Limited announced that CNOOC Gas & Power Group has formally advised that the consent of the Chinese Government Authorities has been received for the $50 million Farm-in for a 50% interest in Exoma’s five Galilee Basin CSG and Shale Gas permits. This approval satisfies the final condition to the Farm-in transaction.
The successful completion of the Farm-in now allows Exoma to implement its accelerated exploration and drilling program.
The Farm-in to Exoma’s 26,840 km² of prospective Coal Seam Gas and Shale Gas tenements is CNOOC Gas & Power Group’s (CNOOC) first overseas unconventional gas exploration project and is strategic to the securing of feed gas for future LNG projects.
Chairman, Brian Barker, stated Exoma’s strategic partner CNOOC Gas & Power Group brings major benefits to the Company and the Project through:
– Initial $50 million funding of exploration expenditure; – Strong focus on large scale gas field development;
– Strategic drive to develop export gas projects;
– Ready market for export gas;
– Access to CNOOC technical expertise at both the upstream & downstream level
CNOOC have further advised that Chinese Government Authority approval for a proposed placement could not be obtained by the termination date of 1 April 2011, and accordingly Exoma will not proceed with a placement of shares to CNOOC.
Drilling Contract & Program
Exoma has entered into a contract with Atlas Drilling Co Pty Ltd to secure the Atlas Rig #1 for the completion of 10 wells with an option to extend.
The 2011 drilling program, planned to commence in late April 2011, will include a budgeted 11 Coal Seam Gas core wells and 10 Shale Gas core wells which form the basis of design for appraisal and reserve development in 2012. It is presently planned to secure a second rig to complement and accelerate the drilling program set out for the Atlas Rig #1.
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Source: Exoma Energy, April 1, 2011;