Coal seam gas explorer Comet Ridge has agreed to acquire Petrel Energy’s interests in three petroleum licences in the northern Gunnedah Basin in northern New South Wales (NSW), Australia.
Comet Ridge will pay A$750,000 ($763,915) in cash for PEL 6, PEL 427 and PEL 428 licences that cover an area of 18,000 km2, located north and west of Santos’ Narrabri CSG Project.
The deal increases Comet’s stake in PEL 427 and PEL 428 to 50% and 60% respectively from 25% and 40% held earlier with the company also to hold 100% of the two permits conventional oil and gas interest.
Comet Ridge will also own a 22.5% stake in the coal seam gas (CSG) interests in PEL 6 and a 97.5% stake in conventional interest.
Comet Ridge managing director Tor McCaul said this latest consolidation has reduced the number of parties across this portion of the Gunnedah Basin down to two – Comet Ridge and Santos.
"We believe that the Gunnedah Basin will emerge as a major CSG province, and this latest acquisition is consistent with Comet Ridge’s strategy of building material interests in prospective CSG basins," he added.
"This acquisition also adds to the Comet Ridge resources base in eastern Australia, adding 243 PJ of contingent resource and 1079 PJ of prospective resource and taking the company to over 5400 PJ of total resources in Queensland and NSW."
The transaction will close following necessary approvals including the NSW Government consents.
Comet Ridge has recently finished a review of the magnetic and gravity data sets of northern Gunnedah Basin and identified certain promising new prospects that are to be tested through a combination of seismic and exploration drilling.
The company is looking to resume CSG exploration activities in the basin during 2012, beginning with small and targeted seismic surveys in PEL 427 and PEL 428.
Santos has the remaining interests in the basin acquired from Eastern Star Gas in 2011.