China energy giant CNOOC signs gas deal with Australia's Exoma Energy

Australia's Exoma Energy Ltd has signed an agreement with Chinese energy giant China National Offshore Oil Corporation (CNOOC) to sell a 50 percent interest in its gas exploration permits in Queensland's Galilee Basin, the Brisbane based oil and gas exploration company announced on Thursday.

Under the agreement, an Australian subsidiary of China National Offshore Oil Corporation (CNOOC) will acquire an equal interest in five permits by spending 50 million AU dollars (49.34 million U.S. dollars) on exploration and appraisal.

CNOOC also has the option to acquire 86.6 million ordinary Exoma shares at 31.5 AU cents (31.1 U.S. cents) per share and a free attaching option for further ordinary shares expiring Dec. 31, 2012.

The agreement and options are subject to approval from the Queensland government and Chinese Government Authorities and the Foreign Acquisitions and Takeovers Act.

Exoma's Chairman Mr Brian Barker said, "It is a very positive endorsement that CNOOC, a world leader in the petroleum industry, shares our technical and commercial assessment of the resource potential of Exoma's Galilee Basin permits."

The China National Offshore Oil Corporation (CNOOC) was founded in 1982 and is one of the largest state owned oil entities in China, as well as the largest offshore oil and gas producer.
(Source:xinhua)