Perth, Feb 16, 2009 AEST (ABN Newswire) - Exoma Energy Limited (ASX:EXE) has received and accepted, subject to shareholder approval, a conditional offer from Innex California Inc. ("Innex") to purchase the Company's entire U.S. oil and gas production and exploration asset portfolio for a total consideration of US$2,550,000.
Exoma Managing Director, David Rowbottam said the sale price represents fair value in the current market, given the short to medium term prospects for oil and gas prices in the U.S. and the increasing challenges of generating an acceptable return on investment in the current U.S. economic environment. "Innex's offer provides a substantial boost to Exoma's cash reserves that are further enhanced by the favourable USD/ AUD exchange rate. The Company plans to use the net proceeds to acquire onshore oil and gas exploration projects in Australia that it believes have better prospects of generating a strong return on investment in the short to medium term."
"The Board of Directors had been examining the options available since last November as the economic conditions in the US deteriorated and adversely impacted the Company's results. Innex was one of the potential joint venture partners approached to participate in Exoma's 2009 drilling programme. The offer requires Innex to complete their due diligence and enter into a definitive agreement by 20 February; with ownership rights being retrospectively transferred effective from 1 February. While the offer is subject to Exoma's shareholders' approval Innex will lodge the balance of the full sale proceeds with Exoma's US attorneys pending final approval. "The cash will be paid in three tranches. The first tranche comprises a non-refundable deposit of US$150,000, and a US$400,000 advance on the drilling costs for Deal 1-11 re-entry well are payable on or before 13 February. The final tranche of US$2,000,000 is payable to a trust account on 20 February, pending formal approval from Exoma's shareholder.
By contrast to the US, Australia's oil and gas exploration sector remains relatively healthy with continued and on-going exploration activity for both conventional and unconventional oil and gas sources. Exploring in our own backyard will reduce our operating costs and enable the Company to continue its efforts to create oil and gas projects that provide early cash flow and generate a strong return on investment." Exoma will release information about future project acquisitions as soon as it is able to do so.
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Brendan Egan
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TEL: +61-414-816-716
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