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Friday, May 27, 2022

Clontarf Energy acquires 10pc stake in Western Australian gas prospect

Irish-based oil and gas explorer Clontarf Energy has acquired 4pc of an offshore gas prospect in Western Australia for $3.8m (€3.8m).

The Sanasof Prospect is a 2500 meter deep, multi-trillion cubic feet prospect owned and operated by Australian firm Western Gas.

Western Gas plans to begin drilling this month or in June, Klontarf said in a statement on Monday.

The drilling is expected to cost approximately $20m, of which Clontarf is funding $4m.

If the cost is exceeded, Clontarf will be responsible for 20pc of the $5m set aside for this purpose and 10pc of any cost above that level.

The $4m acquisition consists of 100 million ordinary shares at 0.25p each, valued at £480,000 as of 6 May. Shareholder approval is not required for the acquisition.

If oil is discovered in the well, the idea would increase to 150 million ordinary shares, up to a maximum of £8.7m, or 80pc of market capitalization, which would require shareholder approval, Clontarf said on Monday.

Sasanof is likely located off the coast of Western Australia, covering an area of ​​up to 400 km2 and estimated by the independent energy advisory ERCE to contain 7.2 trillion cubic feet of gas and 176 million barrels of condensate, with 32pc of breakthrough success. Chances are. ,

Clontarf is acquiring a 10pc interest in Prospect from Western Gas, which will hold 52.5pc of the drilling license after the acquisition.

Other partners include Australian-listed firm Global Oil & Gas (25pc) and Major Energy (12.5pc).

The purchase will be funded from Clontarf’s existing cash balance, following the £3.5m share holding that was completed last month.

Clontarf President David Horgan said the move provided an opportunity to explore large potential gas possibilities in a protected jurisdiction.

“International gas prices have increased since the end of 2021 – particularly in Europe and Asia.

“This is partly due to geopolitical issues, although an underlying concern is the tightening of the supply/demand balance.

“Low investment in new gas development since 2014 – exacerbated by [Covid-19] The pandemic – has left key markets in short supply as demand for gas improves.

“Investing in intermittent renewable generation requires back-up from reliable generators, of which gas-powered turbines are the most flexible and efficient.”

World Nation News Deskhttps://www.worldnationnews.com
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