they take a 20% stake after the first stage of the farm-in and can then take it to 50% if they proceed with a second stage plus they own just less than 10% of the private company that has the rest of the permits.
see my write-up below:
On 23 August 2010 ASX listed minnow Ormil Energy (formerly Golden Tiger Mining) appointed Tom Fontaine as MD of the company. Mr Fontaine was a founding director of Pure Energy Resources and Bounty Oil and Gas, and was one of the largest shareholders of Pure when BG Group bought the company for $1b. Mr Fontaine also became one of the largest shareholders of Ormil, with 15.8m shares, or 8.5% of the company. On 24 August Ormil announced that it was farming-in to three petroleum tenements and the gas rights for a number of coal mining tenements in the Sydney Basin held by public unlisted company Apex Energy NL, in which Ormil owns a 9.5% stake. Under the farm-in agreement Ormil will earn a 20% interest in the tenements and gas rights by paying Apex $0.75m in cash and $1m in shares upfront and then funding $3.2m of exploration in two phases. Ormil will also have the right to increase its interest in the tenements and rights to 50% by funding a further $7m work program. Ormil will be the operator of the exploration programs.
cheers s369
OMX Price at posting:
4.7¢ Sentiment: Hold Disclosure: Held
