Sunshine Gas' (SHG) move into the Surat Basin has received the backing of the investment community with the first tranche of its $5.6 million Convertible Note Offer closing oversubscribed.
The funds were raised so the company could complete the acquisition of the Interstate Energy group of companies, comprising 15% interest in the Roma oil and gas producing field s and associated infrastructure in the Surat Basin in Eastern Queensland. Santos as operator of the field holds the remaining interest of 85%.
Sunshine estimates that the 15% interest represents about 4 petajoules (pj) of proven and probable reserves of gas with around 12pj of total proven, probable and possible gas reserves.
The deal includes access to production infrastructure which should lead to the early development of the company's nearby Overston 1 gas discovery.
Earlier this year Sunshine Gas sealed a $10.5 million farm-in with US independent oil and gas company Samson International, which paved the way for the development of Overston - its maiden gas discovery.
SHG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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