OilVoice - AWE to Acquire More of the BassGas Project

AWE to Acquire More of the BassGas Project

Wednesday, November 11, 2009

Australian Worldwide Exploration Limited (“AWE”) and CalEnergy Gas (Australia) Ltd have entered into arrangements under which CalEnergy will sell its 15% equity interest in the BassGas Project (T/L1 and T/RL 1) for a total consideration of A$80m.

Separately, AWE and Innamincka Petroleum Limited ("Innamincka") have entered into arrangements that will result in Innamincka acquiring 7.5% of the CalEnergy equity.

The CalEnergy and Innamincka arrangements mean that AWE’s share of the project will increase by 7.5%, from 42.5% to 50%.

The purchase of additional equity in BassGas is consistent with AWE’s growth aims.

The transaction will not complete until after February 28, 2010 but the effective date of the acquisition will be July 1, 2009. The purchase consideration will be adjusted as necessary to reflect the effective date. The transaction will add to gas and condensate production and will also add approximately 5.2 million barrels of oil equivalent (“BOE”) proved and probable reserves to AWE.

If Innamincka Petroleum is unable to complete the transaction, AWE will acquire all of CalEnergy’s 15% equity interest.

The transaction will be subject to usual conditions including necessary joint venture and regulatory approvals.