Metgasco currently operates both permits and will acquire the remaing 50 per cent conventional interest and 25 per cent coal seam gas (CSG) interest in PEL 13, as well as the remaining 43.4 per cent of all interests in PEL 426 under the agreement.
Molopo will receive $3 million in cash and $4 million in Metgasco shares.
Metgasco Managing Director David Johnson said that the transaction was the “˜next logical step’ in the development of Metgasco’s interests in the Clarence Moreton Basin CSG fields.
“Metgasco’s proposed acquisition of the remaining interests in PEL 13 and PEL 426 will allow the company to ensure 100 per cent ownership of the permits. Once the transaction is approved, the company will be able to have full control of our activities and drive our exploration and development efforts in these PELs for the benefit of Metgasco shareholders,”? he said.
The proposed acquisition is subject to regulatory and shareholder approvals.
Metgasco has recently completed land requirements and connection studies required for its proposed 30 megawatt gas-fired Richmond Valley Power Station, located near Casino, northern New South Wales, as well as environmental studies for the 145 km Lions Way Pipeline.
The company is developing the pipeline to supply gas from its CSG project to South East Queensland. The pipeline will run from Casino to Ipswich via Kyogle to supply gas to the company’s Clarence Moreton Basin partner, CS Energy.