Exoma shareholders prepare to vote on CNOOC CBM deal

Shareholders of Australian coal-bed methane (CBM) explorer Exoma Energy will vote on 10 February on a proposed deal with Chinese state-owned producer CNOOC, which wants to buy a 50pc stake in five exploration permits in Queensland.

The A$50mn ($49.5mn) transaction was first announced on 9 December and also includes the purchase by CNOOC of a 19.9pc stake in Exoma. The Australian firm said its long-term goal is to prove it has sufficient unconventional gas resources to support an LNG project to supply Asian markets. Exoma is also exploring for shale gas in the five permits it plans to partly sell.

Exoma has potential reserves of 2 trillion ft (56.6bn m ) of gas, certified by US-based MHA Petroleum Consultants, within two of the permits that are included in the CNOOC deal. The company believes that there is sufficient technical information to support the view that substantial resources of both coal seam gas and shale gas are located within the five permits, Exoma said.

CNOOC already has a 10pc interest in the first train of UK energy firm BG's 8.5mn t/yr Queensland Curtis LNG project and 5pc of BG's upstream CBM assets. CNOOC this week announced a $1.3bn deal with US independent Chesapeake Energy for more US shale leases, adding to a $2.16bn tie-up last year for the Eagle Ford shale acreage in Texas.