Arrow Energy said today its 90 per cent-owned subsidiary Arrow Energy International has agreed to a farm-in agreement with Far East Energy that will give Arrow majority ownership of a coal-seam methane project in China.
Under the deal, subject to regulatory approvals, Arrow will farm-in to a 75.25 per cent operating interest in Far East Energy's 66.5 per cent interest in the Qinnan CBM PSC coal seam methane project located in the Qinshui basin of Shanxi province.
Arrow has also agreed to make a $US10 million ($15.3 million) convertible note investment in Far East Energy, which if converted will mean Arrow becomes the company's largest shareholder with an 11.5 per cent stake.
"We expect Qinnan to become a material project within the Arrow portfolio, capable of producing 15-20 PJ per annum for at least 15 years," said Arrow chief executive Nick Davies.
Separately, Arrow Energy said today it has dropped out of the race to acquire coal-seam gas explorer Pure Energy after allowing its bid for the target to lapse.
The gas producer, which was offering $3 cash and 1.57 shares for every Pure Energy share, was battling British-based BG Group for Pure Energy.
BG Group had offered its $8.25 cash per share, or $1.02 billion for the company.
Arrow has secured 20.31 per cent of Pure Energy through its cash and scrip offer, while BG Group has amassed about 33.01 per cent of the company.
Source: The Australian
No comments:
Post a Comment