Australian integrated energy company AGL Energy has acquired permit interests from Innamincka Petroleum in PEL 101 and PEL 103 in the Cooper Basin, Australia. The farm-in involves a cash payment of A$15 million and funding of a A$10 million work program.
According to the company, the work program is aimed at evaluating the identified coal seam gas (CSG) prospect known as the Innamincka Dome located in PEL 103.
AGL Energy (AGL) and Innamincka Petroleum (INP) have also entered into a 10-year gas marketing agreement under which AGL will have the rights to market, on behalf of some or all of the joint venture participants, all gas accumulated within the permit areas.
AGL expects to close this transaction during the first quarter of 2009. The acquisition will be funded from AGL’s existing cash reserves. The company said that it will also look into the concept of aggregating gas for commercialization from PEL 101 and PEL 103 and other recently discovered conventional gas fields in nearby permits.
Michael Fraser, managing director of AGL, said: “This farm-in deal provides AGL to evaluate a CSG prospect located in the Cooper Basin in close proximity to the soon to be commissioned Queensland to South Australia/New South Wales Link pipeline in which AGL holds gas transportation capacity rights.”
AGL Energy is an Australian energy provider and claims to be the only Australian energy producer with a full suite of renewable generation, providing natural gas and electricity to more than six million Australians.