OIP maybe a future possible takeover target. -------------------------------------------------------- Comet Ridge doubles stake in Key Gunnedah Coal Seam Gas Basin to 40%
Thursday, October 14, 2010
Brisbane-based Comet Ridge (ASX: COI) has signed a Binding Heads of Agreement (HOA) to acquire Greenpower Energy Limited?s (ASX: GPP) 20% interest in the prospective Gunnedah Basin permit PEL 428, increasing its stake in a key NSW Coal Seam Gas (CSG) basin.
The transaction increases Comet Ridge?s stake in the Joint Venture to 40%. The JV is exploring for both coal seam and conventional gas in the northern NSW basin. The CSG exploration is operated by Eastern Star Gas.
Tor McCaul, Comet Ridge?s managing director, said the transaction was consistent with the company?s strategy of obtaining significant positions in key CSG basins. Comet Ridge also has CSG projects in Queensland and New Zealand.
PEL 428 is located in the Gunnedah Basin immediately north and west of Eastern Star Gas? (ASSX: ESG) permit PEL 238, which contains the Narrabri Gas Project and Wilga Park Power Station.
?The permit covers an area of 6,021 km2 but has had only limited exploration activity undertaken, compared with other permits in the area,? McCaul said.
Comet Ridge also holds a 25% stake in adjoining permit PEL 427. Exploration activity is progressing in both permit areas.
Under the binding HOA, Comet Ridge will acquire Greenpower?s wholly-owned subsidiary, Davidson Prospecting Pty Ltd, whose sole asset is the 20% interest in the permit PEL 428.
The transaction remains subject to Comet Ridge completing a satisfactory due diligence of Davidson Prospecting Pty Ltd, including the underlying permit interest it holds in PEL 428.
The transaction is expected to be completed within sixty days of the execution of a share sale agreement, scheduled for 29th October 2010.
The PEL 428 Joint Venture is planning a 2D seismic acquisition programme for early 2011, and has a commitment to drill at least one well before September 2012.
Exploration activities in the adjacent PEL 427 are set to increase significantly over the next 6 months.
A seismic reprocessing project is under way, a seismic acquisition programme is scheduled for the first quarter in 2011, and a core hole is scheduled to be drilled in the Bellata Trough by May 2011.
The seismic reprocessing and seismic acquisition programmes in PEL 427 are designed to finalise the well location in the south east corner of PEL 427.
This well will better delineate the extent of Permian coals identified in the Bellata 1 well in PEL 427, which are believed to be the northern extension of the coal formations seen in the Edgeroi and Blue Hills wells in PEL 238.
