My understanding is that CBO is an unlisted subsidiary belonging to OBL (CBO stands for Canning Basin Oil Limited)
OBL was using this entity to raise funds for the drilling of the Cannin Basin (Anns 17 Sept, 8 Dec). Specifically they were looking for funds for the Backreef-1 and Emika-1 well prospects. The intention was to raising funds by offering net present interests in the prospects via the CBO entity.
Initial raising was for $3-5.95 million. This was scaled back to 0.65 - 3.5m which represented investors obtaining a 5 - 25% net present interest in the drills respectively.
Now it looks like the raising via CBO has been cancelled. A few investors have taken shares in OBL instead.
So now OBL will keep all it's interest in these 2 wells (good) but they still need to fund the drills. So I guess they are either going to farm out or CR now.
Please correct me if i'm wrong here - it is slightly confusing.
OBL Price at posting:
3.9¢ Sentiment: Hold Disclosure: Held
