Sydney Gas, AJ Lucas HoA, Andy Lukas new SGL CEOSunday, January...

Sydney Gas, AJ Lucas HoA, Andy Lukas new SGL CEO
Sunday, January 13, 2008; Posted: 06:01 PM

More Breaking News about SGLCF
Sydney Gas confirms discussions with AJ Lucas


Sydney, Jan 14, 2008 (RWE via COMTEX) -- SGLCF | news | PowerRating | PR Charts -- (RWE Aust Business News) Sydney Gas (ASX:SGL) has a heads of agreement with AJ Lucas (ASX:AJL) and will appoint Andy Lukas as its chief executive.

The transaction will give Sydney Gas access to management, personnel and drilling resources in the coal seam methane gas industry with alignment of intersts through equity investment and performance based incentives.

Up to $47.2m in additional equity capital will be available to Sydney Gas.

A meeting of shareholders will be held in March to approve the arrangement.

AJ Lucas will provide $20m up front to accelerate Sydney Gas development of its assets.

An additional $27.2m in total over three years of exploration and development capital will be made via a 15 per cent shareholding in Sydney Gas, as well as options which on exercise, and subject to Sydney Gas shareholder approval, over three years could increase the AJ Lucas holding by 40.25m shares.

The $20m will be achieved via a private placement to AJ Lucas.

An additional $12m and $15.1m will be raised via two tranches of performance linked options which may be exercised in 2 or 3 years and upon Sydney Gas achieving an increase in 2P reserves by at least 75PJ and 150PJ respectively and an increase in the share price to at least 60c and 75c respectively.


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