SUCCESSFUL CAPITAL RAISING AND APPROVAL OF COAL SEAM GAS EXPLORATION BUDGETS Westralian Gas and Power Ltd (“WGP”) is pleased to announce that it has completed a capital raising of $957,000 since October 2008. The company’s new shareholders include a number of South East Asian and Londonbased investors, including a new 13 per cent shareholding by Mr Christopher Brown who was the founding managing director and is a major shareholder of AIM listed company London Mining Plc which has substantial global iron ore and coal interests. The new capital raising enables WGP to pursue additional new projects as all its current onshore projects have been farmed out to joint venture company, Oswest Energy Pty Ltd. Oswest Energy is 75 per cent owned by the major shareholder of the Burrup Fertiliser plant in the Pilbara, Mr Pankaj Oswal, and 25 per cent owned by WGP. The joint venture agreement provides for reimbursement over three years of WGP’s previous exploration costs to a maximum of $2.5 million, commencing 12 months after the transfer of all titles to the joint venture company. OSWEST ENERGY JOINT VENTURE WGP has accepted the first stage of the joint venture budget of $1.4 million to fund its coal and coal seam gas exploration. Pursuant to the terms of the joint venture, WGP CEO Stephen Thomas has been seconded to Oswest Energy to oversee the exploration activities. The seismic data will be processed and interpreted to identify five new drill targets in the Collie Basin coal areas. The timing for the drilling programme is considered good as drilling rigs, teams and exploration equipment are now more competitively priced and readily available. ROC OIL JOINT VENTURE OFFSHORE PERTH BASIN Significant progress has been made on exploration of the company’s Perth offshore oil and gas leases. In accordance with its joint venture agreement with WGP, Roc Oil Company Limited has completed re-processing and interpretation of 276 km of seismic data from WGP’s offshore leases. The re-processing was carried out by Fugro Seismic Imaging in Perth. As a result, a further 350 square kilometre three-dimensional seismic
WGP Price at posting:
2.3¢ Sentiment: Buy Disclosure: Held
