AGL Energy Limited (AGL) declares the acquisition of permit interests from Innamincka Petroleum Limited (INP) in PEL 101 and PEL 103 in the Cooper Basin. The farm-in involves a cash payment of $15m and funding a $10m work program. The work program is primarily aimed at evaluating the recently identified CSG prospect known as the Innamincka Dome located in PEL 103. AGL and INP have also entered into a 10 year Gas Marketing Agreement under which AGL will have the exclusive rights to market, on behalf of some or all of the joint venture participants, all gas accumulated within the permit areas.

AGL expects to close this transaction during 1Q 2009. The acquisition will be funded from AGL’s existing cash reserves.

AGL Managing Director Michael Fraser said, “This farm-in deal provides AGL with the opportunity to evaluate a new CSG prospect located in the Cooper Basin in close proximity to the soon to be commissioned QSN Link pipeline in which AGL holds substantial gas transportation capacity rights.”

AGL will also look into the concept of aggregating gas for commercialisation from PEL 101 and PEL 103 and other recently discovered conventional gas fields in nearby permits.

PEL 101 includes the Ginko and Crocus gas fields. As well as the Innamincka Dome, PEL 103 includes the Juniper1 and producing Flax1 oil fields and the Yarrow gas field. Post farm-in, AGL’s interest will be 37.5% in PEL 103 (which contains PRL 14 and PEL 103A) and 35% in PEL 101. AGL estimates its share of recoverable gas in PEL 101 and PEL 103 to be approximately 30Bcf.

Tags: AGL Energy Limited, Innamincka Petroleum