Revamped Orion to focus on shale gas prospects in the US
Brian Robins January 18, 2012
"It should be cashflow positive very early" ... Orion's chief executive, Russell Langusch. Photo: Bloomberg THE Myer family has emerged as a large shareholder in the refocused Orion Petroleum following its merger with an unlisted explorer launched by former senior staff from Molopo Energy.
Former Molopo managers Stephen Mitchell and David Hobday, with the Myer family, were shareholders in Petrel Energy Pty Ltd, launched to focus on shale gas prospects in the US.
Petrel was sold into Orion for shares, with Petrel shareholders emerging with 43 per cent of the enlarged company's capital. The Myer Family emerged with 5.1 per cent of the capital.
Advertisement: Story continues below Petrel holds interests in shale gas exploration acreage in the US. The first wells are due to begin production by the end of next month.
The acreage involves shallow wells - drilled to a depth of about 1000 metres - that are inexpensive and quick to drill.
''It should be cashflow positive very early,'' Orion's chief executive, Russell Langusch, said of the first round of wells. ''If it doesn't work out, we have other options we're reviewing.''
Orion was founded as a coal seam methane explorer, holding interests in acreage in northern NSW, although exploration work there has been suspended while the state government completes a review of the sector.
Santos, which has a 9.2 per cent stake in the enlarged Orion, is reviewing its position in this acreage as well as its holding in Orion itself.
