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moby oil

  1. 2,648 Posts.
    ACQUISITION OF 15% OF WA-360-P (¡§ARTEMIS¡¨) AND 50% OF WA-409-P
    Moby Oil & Gas Limited (¡§Moby¡¨) (ASX Code: MOG) is pleased to advise it has entered into an
    agreement to acquire from Gascorp Australia Pty Ltd (¡§Gascorp¡¨), all of the shares in Rankin
    Trend Pty Limited (¡§Rankin Trend¡¨), a wholly owned subsidiary of Gascorp. Rankin Trend holds,
    or is entitled to hold, an undivided 15% Participating Interest in WA-360-P and an undivided 50%
    Participating Interest in WA-409-P.
    WA-360-P contains the Artemis Prospect identified by the permit Operator, MEO Australia
    Limited (¡§MEO¡¨) (ASX Code: MEO). MEO farmed in to WA-360-P in 2007 and now holds a 70%
    interest in that permit, with each of Rankin Trend and Cue Energy Resources Limited (¡§Cue¡¨)
    holding a 15% interest. The MEO farmin terms provide that, by 31 December 2009, MEO must
    either commit to the drilling of a well in WA-360-P or reassign a 35% interest in the permit to each
    of Rankin Trend and Cue. By making a commitment to drill a well, MEO will thus be required to
    meet all of the costs of that well, including those costs attributable to each of the 15% permit
    interests held by Rankin Trend and Cue.
    As announced by MEO to the ASX and as recorded on the MEO website
    (www.meoaustralia.com.au):
    „h The Artemis Prospect has been identified by MEO as containing an aggregate prospective
    resource of 20.3 Tcf of gas in place of which 12 Tcf is expected by MEO to be recoverable ¡V
    assuming a 60% recovery factor;
    „h MEO currently holds a 70% interest in WA-360-P but intends to offer a 50% interest to a farmin
    partner willing to: (i) meet the costs of a well to test the Artemis Prospect; (ii) reimburse
    past seismic exploration costs; and (iii) in the event of a discovery at Artemis, fund MEO¡¦s
    residual 20% share of the cost of two further wells;
    „h The Artemis prospect is estimated by MEO to have a Geological Chance of Success of 32%;
    and
    „h MEO has expressed confidence it will be able to achieve the farmout terms it seeks.
    Moby is presently obtaining independent reports on WA-360-P and is not in a position to
    comment on MEO¡¦s assessment of the Artemis Prospect. By this release Moby is merely
    directing the attention of its members and the market generally to MEO¡¦s assessment of the
    Artemis Prospect as released by MEO to ASX. Investors should make their own assessment of
    the data released by MEO by accessing it from the MEO website.
    The agreement with Gascorp is subject to and conditional upon:
    1. MEO providing Rankin Trend, on or before 31 December 2009, with an irrevocable binding
    commitment to drill a well in WA-360-P;
    2. Moby shareholders approving, in general meeting, the acquisition of Rankin Trend in
    exchange for the issue of shares in Moby. This approval is required because Gascorp and
    Rankin Trend are Associates (within the meaning of the Corporations Act 2001) of Mr E G
    Albers, a director and substantial shareholder in Moby, and because the consideration for
    the acquisition of Rankin Trend is the issue of shares in Moby in exchange for all of the
    shares in Rankin Trend;
    3. Moby shareholders approving, in general meeting, the farmins to each of Braveheart and
    Cornea on the terms announced on 18 September 2009 and Moby raising sufficient capital,
    by placement or otherwise, to fund it¡¦s share of the cost of the planned drilling programme
    in WA-333-P (the Braveheart well) and in WA-342-P (the Cornea Well); and
    4. Moby obtaining all necessary regulatory approvals.
    The consideration for the acquisition of Rankin Trend is the issue by Moby of 120,000,000
    ordinary shares each credited as fully paid. When issued, those shares will be subject to escrow
    restrictions under ASX Listing Rules for a period of 12 months from the date of issue.
    A meeting of the members of Moby is to be convened as soon as possible to consider and, if
    thought fit, to approve the proposed acquisition of Rankin Trend and the issue of the 120,000,000
    shares as the consideration for its acquisition, the Braveheart Farmin and the Cornea Farmin. An
    explanatory memorandum will be sent to shareholders in relation to these matters. None of Mr
    Albers or any of his Associates (within the meaning of the Corporations Act 2001) will vote on any
    resolution referred to above. Each of the resolutions will be conditional on each of the other
    resolutions being passed and to Moby raising the necessary funds to complete the farmins.
    The acquisition of Rankin Trend, if approved by shareholders and if the various conditions of the
    agreement are met, will allow Moby, without any cost exposure, to be a 15% participant in a
    potentially high impact well in an area where there have been several large discoveries of
    hydrocarbons and which is close to existing and planned infrastructure.
    As noted above, Moby is conducting its own independent assessment of the prospectivity of WA-
    360-P. It is also carrying out an independent assessment of the prospectivity of WA-342-P
    (containing the known Cornea oil and gas accumulation) and WA-332-P and WA-333-P (containing
    the Braveheart Prospect).
    The market will be kept fully informed as further details become available.
    By Order of the Board
    J.G. Tuohy
    Company Secretary
    29 September 2009
 
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