NEW STANDARD ENERGY SHAREHOLDERS STRONGLY ENDORSE TRANSACTION AT GENERAL MEETING
New Standard Energy Ltd (New Standard) has received overwhelming support from shareholders at the company’s Extraordinary General Meeting to progress a transaction that will transform the company into a diverse oil and gas explorer, developer and producer.
In excess of 95 per cent of shareholder votes were cast in favour of the transaction to purchase producing and prospective acreage in both the Eagle Ford shale in onshore Texas and in the Cooper Basin in South Australia, to add to the Company’s frontier Western Australian assets.
New Standard Energy Chairman Arthur Dixon said he was pleased with the level of shareholder support at today’s meeting to endorse the change to the company’s forward strategy and growth plan.
“It’s not every day that we can present our shareholders with an opportunity such as this. Making the jump from an explorer to a producer and developer is a big one and I am pleased with the support for the Company’s strategy,” said Mr Dixon.
Drilling will commence in the Eagle Ford shale at the Company’s Atascosa Project, Texas, USA, almost immediately, with two wells to be drilled on the same pad over the next two months. These wells are expected to be in production by May 2014. New Standard’s new strategic alliance partner and shareholder, Magnum Hunter Resources, will act as operator of the acreage as part of the strategic alliance, using its existing technical skillset and local knowledge base to advance the production project. New Standard will also book the production and revenue from the Project’s first five wells backdated to an effective date of 1 December 2013. New Standard Energy Managing Director Phil Thick said the wells would generate immediate cashflow for the Company. “The Eagle Ford drilling campaign represents the first step in a changing landscape for New Standard. Not only will it be the first time we work alongside the team at Magnum Hunter but it also represents our shift from solely an explorer to also being a producer and developer,” said Mr Thick.
A reserves study by completed by Cawley, Gillespie and Associates (CG&A) delineated 12.3 million barrels oil equivalent (BOE) of 3P reserves as at 1 December 2013 from the 5,182 net acres in Atascosa Project.
“This is a significant opportunity and the Company is focused on developing the Atascosa Project; working with Ambassador Oil and Gas to progress our Cooper Basin Project to take advantage of the domestic and export market opportunity in the Eastern States of Australia; and opening up the onshore Canning and Carnarvon Basins in Western Australia,” Mr Thick said.
AQO Price at posting:
17.0¢ Sentiment: ST Buy Disclosure: Held
