CNOOC a Step Closer to Exoma Investment

Australia's Treasurer has approved a proposed investment by China National Offshore Oil Corp in a coal seam gas and shale gas exploration prospect in Queensland in partnership with Exoma Energy.

CNOOC's  farm-in agreement commits it to spend at least A$50 million for a 50 percent stake in Exoma's five exploration permits in the Galilee Basin and gives it options to buy 173.2 million shares in Exoma, amounting to a 35 percent stake based on Exoma's current share base.

The investment still requires approvals from the Chinese and Queensland governments.