Melbourne, Sep 4, 2008 AEST (ABN Newswire) - Marion Energy Limited (ASX:MAE)(PINK:MAEJF) is pleased to announce that it has finalised the acquisition of the interests of Odyssey Energy Limited (ASX:ODY) in the Helper and Jester-Bloomington projects, thereby increasing Marion's 2P gas reserve base by 29 Bcf to approximately 319 Bcf (billion cubic feet). Odyssey held a 30% working interest in the Helper Project and a 33% working interest in the Jester-Bloomington Project. This transaction was previously announced to the ASX on 24 June, 2008.
The consideration for this transaction has been finalised by Marion issuing 27.5 million fully paid ordinary shares to Odyssey, as approved by a General Meeting of Marion shareholders held on 1 September, 2008. These shares will be subject to a voluntary escrow period of 9 months.
Key benefits for Marion shareholders
The acquisition provides Marion with the following key benefits:
- Increase in Booked Gas Reserves
A 10% increase in 2P reserves, from 290 to approximately 319 Bcf, with further reserve additions anticipated at the Helper project (and the Clear Creek project as well) during 2008.
- Strengthening of Marion's Strategic Position
Following completion, Marion will own a strengthened and highly strategic portfolio of US gas development assets, representing an attractive footprint in Utah and Oklahoma, including:
- 100% working interest in the Clear Creek project in Utah;
- 100% working interest in the Helper project in Utah, including the recent Morrison Formation discovery; and
- 100% working interest in the majority of the Jester-Bloomington project, Oklahoma (67% in other areas).
Commenting on the acquisition, Jeff Clarke, Marion's CEO said that "this is an excellent result for Marion. On a fully diluted basis, we have been able to increase our reserve base by 10%, but with only a 7% increase in shares issued on a fully diluted basis.
Importantly for Marion we will now have a 100% interest in the Helper project which has a significant potential to deliver a large increase in reserves and shareholder value following our recent new discovery in the Morrison Formation."
Patersons Corporate Finance Limited acted as Marion's Merger and Acquisition adviser for this transaction.
Contact
For further information contact:
North American Contact:
Mr Jeff Clarke
Managing Director & CEO
Ph: +1-214-244-7690
Email: jclarke@marionenergy.com
Australian Contact:
Mr Peter Collery
Executive Director and Company Secretary
Ph: +61-3-8862-6466
Email: peter@marionenergy.com.au
| ||
|
