Triple to Acquire CSG Project in China
Triple Energy announced that it has executed a share purchase agreement to acquire CFT’s coal seam gas project and interests in Northern China.
The Agreement remains subject to a number of conditions precedent, including final due diligence sign off and shareholder approval.
The board of Triple considers that this project provides a medium to low risk opportunity for the shareholders to be exposed to significant value.
The project comes with expert Coal Bed Methane (CBM) management in a highly prospective area with proven evidence of gas production from nearby coal seams and gas flow from coal mining operations. It is an excellent opportunity for the company to be exposed to the possibility of a meaningful gas production business in the near term.
The project has the following attributes:
- Experienced oil and gas board and CBM expert management
- Excellent fiscal terms and equity position (80%)
- Material acreage position
- Potential for material reserves
- Ready gas market for any/all produced gas – huge proximate potential customer base
- Good gas price – A$7.00 to A$8.00 / mmscf
- Near term news-flow – drilling DST well this month – considered low/moderate risk
- If successful, time to development is very short – could be as early as mid next year
- Strong Chinese partner – motivated for project to succeed (mine safety)
Equity Position and Tenure
Under the Agreement, Triple will acquire an 80% interest in a coal bed methane project in northern China. The project is conducted a via 45 year Cooperative Joint Venture with Longmay Coal Mining Company, one of China’s largest coal miners and the largest employer in the area.
The Cooperative Joint Venture equity will be as follows:
- Triple Energy Ltd – 80%
- Longmay Coal Mining Company – 20%
LNG World News Staff, October 05, 2012; Image: Triple Energy