China Blocks Exoma-CNOOC Deal

Chinese authorities have declined to extend final approval to the Exoma-CNOOC farm in agreement and capital acquisition contract.

In September last year, Exoma Energy Limited had executed a farmin agreement, with a minimum combined value of approximately A$23.4 million, with China National Offshore Oil Corporation via its Australian subsidiary, CNOOC Galilee Gas Company Pty Ltd.

Under the terms of the Supplemental Farmin Agreement, CNOOC had to increase its participating interest from 50% to 60% in Exoma’s ATP's 991, 996, 999, 1005 and 1008 and, subject to grant, new ATPs 1127, 1130, 1137 and 1150, situated in the Galilee and Eromanga Basins in Central Queensland.     

With the latest Chinese move, both Agreements lapsed on 31 December 2012 and CNOOC’s additional investment in Exoma as previously announced will not proceed.

“The Board is considering the impact of the CNOOC investment in the Company not proceeding as planned and envisages further discussions with CNOOC about ways of working together on new ventures, as well as on Exoma’s current permit areas, in which CNOOC retains a significant interest,” Exoma said in  a staement.