(EnergyAsia, March 18 2011, Friday) — Australia’s GB Energy Limited said it will be acquiring interests in a portfolio of oil and gas interests from Cooper Energy Limited including a Cooper Basin oilfield, exploration licences and farm-out contracts.
The transaction is subject to GB Energy completing a capital raising and normal regulatory approvals.
The principal asset is a 30% interest in the producing Worrior oilfield in the Cooper Basin, which has 2P reserves of 2.1 million barrels and which, as present rates, produces over 150,000 barrels of oil per year.
GB Energy will also acquire a 25% interest in PEL90 and a 30% interest in PEL93 and enter farm-out agreements reflecting various percentages in PEL100 (9.165%), PEL110 (10%), and PEL495 (20%), located in the Cooper and Otway Basins.
The up-front transaction consideration comprises A$16 million in cash and A$500,000 in GB Energy shares. (US$1=A$1).
GB said that in the future, a production fee is also payable to COE based on output from the Worrior oilfield and a success fee based on the future reserves calculation for PEL 90.
GB Energy said the acquisition is in line with the strategy outlined by its directors last September to focus on oil and gas assets in Australia.