Eneabba Gas Ltd announced on 25 February 2016 that it had entered into a binding agreement for the sale of its Perth Basin exploration interests, which include 100% of the Ocean Hill project and its 50% interest in EP447, to UIL Energy Limited (ASX: UIL).
Pursuant to the agreement, UIL will purchase Eneabba Gas’s two subsidiaries, Oceanhill Pty Ltd and GCC Methane Pty Ltd that respectively own the Ocean Hill prospect (EPA90) and 50% of EP447 (providing UIL Energy with 100% of EP447).
On completion of the agreement, UIL Energy will issue to Eneabba Gas a total of 90 million convertible redeemable preference shares in UIL Energy (CRPS) which Eneabba Gas will, after completion of the agreement, distribute pro-rata to its shareholders. Immediately upon distribution to the shareholders of Eneabba Gas, 55 million of these CRPS will automatically convert into 55 million ordinary shares in UIL that will rank equally with current UIL ordinary shares. The remaining 35 million convertible redeemable preference shares (CRPS) distributed to the shareholders of Eneabba Gas will later convert into ordinary UIL Energy shares in the event of successful results from drilling Ocean Hill#2 well.
For a copy of the Notice of Meeting to approve the Transaction, please click here.
For a copy of the Prospectus offer for the in-specie distribution of the convertible redeemable preference shares, please click here.
Eneabba is a publicly listed energy company (ASX:ENB) with a portfolio of energy projects located in the North Perth Basin. The Company was listed successfully on the Australian Stock Exchange (ASX code: ENB) on 28 April, 2006.
Gas Exploration / Development
Eneabba focused strategy is the cost effective development of onshore gas projects in the Perth Basin.
Eneabba’s Perth basin gas assets comprise the Ocean Hill Gas Project (under farm-out arrangement with Finder Exploration) and Exploration Permit 447 (50% interest).
Why focus on the Perth Basin?
- Underexplored – the Perth Basin has seen just over 360 wells drilled targeting hydrocarbons since the first well was drilled in 1959. In comparison , the Haynesville Shale in the US that covers 25% less acres than the Perth Basin has seen over 2,250 completed wells in the last eight years. The Perth Basin offers large targets in a proven and underexplored hydrocarbon basin.
- Rising domestic gas prices
-Location of significant established infrastructure, including the Dampier-to-Bunbury-Gas-Pipeline which traverses both the Ocean Hill Project and EP-447
-Proximity to end user markets
-Historical and recent significant exploration success
Power Station - Centauri-1 Project
Eneabba owns a large sized block of freehold land, located approximately 8km east of Dongara, which has all the necessary approvals to construct and operate the proposed 168MW Centauri-1 Power Station, including environmental approval and a power generation licence.
The power station site is surrounded by infrastructure; a main highway on one boundary, high speed fibre optic cable, power, rail and a natural gas pipeline (APA’s Parmelia line) which runs through the property. AWE’s significant ‘Senecio’ gas discovery is located on the neighbouring property.
The Company is considering development options including searching for a funding partner.