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Melbourne, Aug 10, 2010 (ABN Newswire) - The following announcement is made by Oil Basins Limited so as to keep the market fully informed.
Oil Basins Limited (
ASX:OBL) and Liquefied Natural Gas Limited (ASX:LNG) (PINK:LNGLF) have signed a non-exclusive Strategic Alliance Agreement (SAA) in respect of natural gas, coal seam gas and shale gas in the Canning Basin, Western Australia for the purpose of evaluation and the appropriate development of projects and in particular an LNG production facility in the Canning Basin Region using feedstock from OBL.
OBL will have the right, but not obligation, to invest in any such LNG project up to a maximum of 20% on an at cost basis, however this maximum becomes 30% should OBL and its JV consortia deliver certified 2P gas reserves of at least 1.0 TCF (in accordance with SPE definitions) within 4 years of work programs commencing in the field.
The Directors of OBL are delighted with the SAA with LNG as it demonstrates both confidence and long term support from its new Alliance Partner. In addition to furthering Farminee interest in the Company's exploration portfolio, it represents a significant potential integrated downstream wealth creation opportunity for OBL shareholders in LNG.
The Company looks forward to a close working relationship with its Alliance Partner LNG who in addition, recently on 27 July 2010, successfully subscribed via a wholly-owned subsidiary to the placement of 6.5 million OBL ordinary shares representing a stake of 4.94% of OBL.
Oil Basins Limited (
ASX:OBL) and Liquefied Natural Gas Limited (ASX:LNG) (PINK:LNGLF) have signed a non-exclusive Strategic Alliance Agreement (SAA) in respect of natural gas, coal seam gas and shale gas in the Canning Basin, Western Australia for the purpose of evaluation and the appropriate development of projects and in particular an LNG production facility in the Canning Basin Region using feedstock from OBL.OBL will have the right, but not obligation, to invest in any such LNG project up to a maximum of 20% on an at cost basis, however this maximum becomes 30% should OBL and its JV consortia deliver certified 2P gas reserves of at least 1.0 TCF (in accordance with SPE definitions) within 4 years of work programs commencing in the field.
The Directors of OBL are delighted with the SAA with LNG as it demonstrates both confidence and long term support from its new Alliance Partner. In addition to furthering Farminee interest in the Company's exploration portfolio, it represents a significant potential integrated downstream wealth creation opportunity for OBL shareholders in LNG.
The Company looks forward to a close working relationship with its Alliance Partner LNG who in addition, recently on 27 July 2010, successfully subscribed via a wholly-owned subsidiary to the placement of 6.5 million OBL ordinary shares representing a stake of 4.94% of OBL.
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About Oil Basins Limited
Oil Basins Limited (ASX:OBL) is engaged in the investment in selected exploration production and development opportunities in the upstream oil and gas sector. Oil Basins Limited was listed on the ASX on 23 August 2006 and is involved in exploration for oil and gas initially in the offshore Gippsland Basin waters of south-eastern Australia and the onshore Canning Basin of Western Australia. Since listing the Company has increased its leverage across all of its assets and has increased its exposure to attractive and prospective areas with the Canning Basin.
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>>>             Liquefied Natural Gas Limited>>> Oil Basins Limited |
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