potential reminder

9 December, 2010
ASX Announcement
CNOOC $50m Strategic Investment
in Exoma’s Queensland CSG & Shale Gas Projects
Key Points
? CNOOC farmin to Exoma’s 5 Galilee Basin ATP’s to acquire 50% for AUD$50 million;
? Exoma grant CNOOC option to acquire 86.6 million shares at 31.5 cents per share;
? Aggressive Coal Seam Gas and Shale Gas exploration program planned for Exoma’s
26,840 km² of acreage with Gas In Place estimated to be greater than 100 TCF.
Exoma Energy Limited (ASX:EXE) yesterday executed a Farmin Agreement, in Beijing, with one of
China’s leading integrated energy companies, China National Offshore Oil Corporation, through
one of its subsidiaries in Australia (“CNOOC”).
Under the terms of the Farmin CNOOC will acquire a 50% participating interest in Exoma’s ATP
991, 996, 999, 1005 and 1008 located in the central Queensland Galilee Basin (Map 1) by
contributing $50 million towards exploration and appraisal expenditure during the Farmin Period,
expiring on 31 August 2013.
Exoma has also granted to CNOOC an option (the “Option”), expiring five days after the
satisfaction of all conditions precedent, to acquire 86.6 million ordinary shares of the Company at
31.5 cents per share. Each share will be issued with one free attaching option to acquire a
further ordinary share at an exercise price of 31.5 cents, expiring 31 December 2012.
The Farmin Agreement and the Option are conditional on the indicative approval of the
Queensland Government to the assignment of the Participation interest in the ATP’s, approvals
and consents from the Chinese Government Authorities and notice from the Treasurer pursuant
to the Foreign Acquisitions and Takeovers Act 1975 that there is no objection to the transaction.
In addition, the granting of the Option is also conditional on shareholder approval in accordance
with the ASX Listing Rules.
CNOOC stated that “CNOOC has the desire to be acquiring an interest in such a significant gas
exploration area in Queensland which we believe has the potential to support one of the largest
coal seam gas and shale gas projects in Australia. CNOOC believes this investment will benefit
both parties.”
Exoma’s Chairman Mr Brian Barker said “It is a very positive endorsement that CNOOC, a world
leader in the petroleum industry, shares our technical and commercial assessment of the
resource potential of Exoma’s Galilee Basin permits. With CNOOC’s involvement, Exoma will now
accelerate its exploration program for its Galilee Basin permits which Exoma believes host very
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large CSG and SG resources, with additional potential for conventional petroleum resources. We
are confident that these gas resources will underpin one or more large downstream gas
development projects serving both export and domestic gas markets for many years.”