China's CNOOC to invest $23m more into Australian Exoma Energy

11 September 2012 07:03  [Source: ICIS news]

SINGAPORE (ICIS)--China National Offshore Oil Corp (CNOOC) will invest at least Australian dollar (A$) 23.4m ($23m) more into Exoma Energy under two agreements signed between the companies, the Australian oil and gas firm said late on Monday.

“We are very pleased to further strengthen our relationship with CNOOC and view this additional investment as indicative of CNOOC’s strong support for our exploration program and our assessment of the resource potential of our permits,” said Exoma chairman Brian Barker in the statement.

CNOOC will invest A$10.7m have initial shareholding interest of about 13% in Exoma under a shares subscription deal. The company’s stake in Exoma could be raised to as much as 19.9%, subject to approval of the Australian firm’s shareholders.

Meanwhile, under a supplemental farm-in agreement, “CNOOC will earn its additional 10% interest by contributing a further A$12.7m towards Exoma’s share of exploration and appraisal expenditure during the additional farm-in period" on assets in Galilee and Eromanga Basins in Central Queensland. The additional farm-in period expires in end-2015.

In a previous agreement dated December 2010, CNOOC had agreed to fund A$50m of the exploration and appraisal costs to earn its original 50% interest in Exoma’s exploration blocks.

The agreements are still subject to regulatory approvals.

($1 = A$0.97)

By: Dolly Wu
+65 6780 4359

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly