ambassador's $50m cooper deal

Im a little surprised by some of the comments by HC members on yesterdays news. I see this as a major step forward for AQO and lets not forget that other Majors are still free to make approaches. Especially the ones who AQO have been talking to over the last 6 months. More to come IMO!!!!

Ambassador's $50m Cooper deal

by: Matt Chambers
From: The Australian
August 06, 2013 12:00AM

FORMER Nexus Energy executive directors Michael Fraser and Ian Boserio have agreed to a conditional farm-in deal to enter Ambassador Oil and Gas's Cooper Basin ground in what is being presented as a forerunner to bringing in US shale company Magnum Hunter Resources.

Pathfinder Energy, a company set up by Fraser and Boserio to focus on offshore West Australian permits, has signed a heads of agreement, through a subsidiary, to negotiate a $50 million farm-in deal to take a 70 per cent stake in South Australian permits with coal-seam gas and tight oil sands potential.

The deal is conditional on the subsidiary, Outback Energy Hunter, finalising funding and subscribing for up to $9.1m of shares at 25c each by the end of October. Shares of Melbourne-based Ambassador slipped 0.5c to 18c yesterday.

Ambassador said Magnum Hunter chief Gary Evans had a "long-established personal association" with Fowler and that Evans had agreed to advise on the Cooper Basin ground.

No information was given on how Pathfinder will finance its $50m commitment if the deal goes ahead, but there is hope within Ambassador that a deal with Magnum Hunter will be lined up.