Ambassador Oil and Gas Ltd has farmed-out a 52.5% working interest in its highly prospective PEL 570 exploration permit in the Cooper Basin (South Australia) to New Standard Energy Ltd for $42.5 million in direct exploration expenditure.

The deal, representing an implied value of 27 cents per Ambassador share (not including cash reserves and USA acreage), also brings one of the US shale industry pioneers, Magnum Hunter Resources Corp, to help guide exploration for the high liquids content/low CO2 gas targets known to exist in Cooper Basin permit PEL 570. New Standard is an experienced onshore oil and gas explorer in Western Australia.

Tags: Ambassador Oil and Gas Ltd, New Standard Energy