OilVoice - Innamincka Decides Not to Go Ahead With BassGas Acquisition

Innamincka Decides Not to Go Ahead With BassGas Acquisition

Monday, March 01, 2010

The Directors of Innamincka Petroleum Limited (INP) advise that the company has ceased its pursuit of the acquisition of an interest in the BassGas assets from AWE Limited (AWE) under the existing participation agreement between the parties.

Despite substantial investor support, Innamincka was unable to reach the funding level required for the transaction, and the Directors did not have the necessary level of confidence that the transaction could be successfully completed in the timeframe required.

As a result, all capital raising activities directed at the BassGas acquisition have ceased. Looking forward, the recent success at Rockhopper, which resulted in a new oil and gas discovery in the T/18P block, will require follow-up. In addition, the adjacent Gentoo structure has improved as a potential target for drilling. With the Trefoil drilling campaign having confirmed the southern extension of the Trefoil gas and condensate field, the company will focus on maximising the value of these key assets while continuing to progress its activities in the Cooper Basin.

Following the refund of its deposit from the BassGas transaction, INP will have cash reserves of $17.9m and no debt, and remains in a sound financial position to allow it to implement its near term exploration strategy.