next coal seam gas play, page-10

below is a piece taken from the Business Spectator overnight.


Future Corp, European Gas farm-in to France coal seam methane

Source: News Bites

Future Corporation Australia Ltd has signed a conditional heads of agreement with France's largest coal seam gas explorer, European Gas Ltd, to farm-in to three coal seam methane (CSM) projects in Europe with potential for early production, ready-made markets and close to existing pipeline infrastructure.

The core project under the agreement is the Gardanne CSM project in southern France which covers some 365 sq km and has a current gas in place resource estimate of 105 Petajoules (99.1 Bcf).

To earn a 70% interest in the Gardanne project, Future Corp has agreed to fund a Euro1.5 million ($A2.5 million) works program including the drilling of an appraisal well. European Gas will be the initial operator. As part of the farm-in terms Future Corp will also issue to European Gas 130 million shares and 100 million 1.5c options exercisable prior to December 31, 2013.

As the farm-in to the Gardanne project remains subject to obtaining approval for an extension of the relevant permit, the board of directors is yet to form a view on whether the transaction will result in a change to the nature of its activities. The company expects to know whether the transaction will go ahead by December 31.

STOCK DASHBOARD: September 08, 2009