Australian energy company Exoma Energy Limited has entered into a conditional agreement to acquire a 100% interest in the Galilee Gas Project, five contiguous Authorities to Prospect (ATP) in the highly prospective Galilee Basin in the Central Queensland region of Australia.

The Galilee Gas Project (ATP’s 991, 996, 999, 1005 and 1008) cover an area of 26,840 km² (approx 6.6 million acres) (refer Figure 1) and are in the final stages of the granting process by the Queensland Department of Energy & Mines. The transaction is subject to the ATP’s being granted, EXE shareholder approval and other commercial matters being satisfied.

Exoma will acquire the 100% interest in the Galilee Gas Project through the issue of approximately 114 million fully paid Exoma ordinary shares and the same number of options, exercisable at A$0.10 each, to the Shareholders of private company, Longreach Number 2 Pty Ltd, (“Longreach”). On closing of the transaction Longreach will become a wholly owned subsidiary of Exoma.

The Vendors will also be entitled to receive approximately 114 million performance shares, which may convert to ordinary shares if specific milestones based exploration success or share price performance are achieved within set periods.

Tags: Exoma Energy Limited