PERTH (miningweekly.com)− The Queensland government has given indicative approval for China National Offshore Oil Corporation subsidiary CNOOC Gas & Power to gain a 50% stake in five Exoma exploration permits.

Exoma and CNOOC entered into a farm-in agreement last year, under which CNOOC would commit to spending at least A$50-million on coal seam gas (CSG) and shale gas exploration, to earn the interest in the five permits.

The two companies also incorporated the granting of an option to CNOOC to take a placement of 86,6-million shares in Exoma, at 31,5c a share, as well as 86,6-million options, exercisable at the same price.

The farm-in agreement was subject to state government and shareholder approval.

The state government’s approval comes hot on the heels of the Foreign Investment Review Board (FIRB) also clearing the A$50-million farm-in agreement.

The only remaining condition was the consent of the Chinese government, which Exoma said had “progressed positively towards a timely approval”.

CNOOC has a long-term commitment to investment in Australian energy resources and in particular the liquefied natural gas (LNG) CSG projects in Queensland.

CNOOC has acquired a 5% interest in British Gas (BG)/QGC’s CSG tenements in the Surat basin and a 10% interest in one of the first two LNG Trains to be built by British Gas in Gladstone.

The Chinese State-owed entity has also entered into an agreement with BG to buy 3,6-million tons a year of LNG from the proposed Gladstone plant.

CNOOC further holds a 5,3% interest in the North West Shelf gas project and a 25% interest in certain offshore exploration permits in Western Australia where the joint venture is conducting an exploration programme.

Recently, CNOOC received FIRB approval to acquire a controlling interest in the South Australian Arckaringa coal project where coal for power and coal to oil technology would be developed.

 

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