Energy Investments in $4.6m financing deal for Cooper Basin...

Energy Investments in $4.6m financing deal for Cooper Basin
29-March-07 by Edited announcement

Starting to look like the next QGC

Today's business headlines - 30 Mar, 08:10am

West Perth-based energy exploration company Energy Investments Ltd has entered into a financing agreement with Melbourne-based Chimaera Capital worth $4.6 million, the company announced today.

The full text of a company announcement is pasted below

Diversified energy exploration and development company Energy Investments Limited is pleased to announce it has entered into a financing agreement with Melbourne based investment banking group Chimaera Capital.

Chimaera will provide loan funds to EIV of up to A$4.6 million, on commercial terms, to support EIV's ongoing development programs in the Cooper Basin and the highly prospective Queensland Coal Bed Methane portfolio.

EIV's Joint Venture with Great Artesian Oil & Gas Ltd as operator of the Spinel Block JV within Cooper Basin PEL 106 involves the acquisition of approximately 340 sq km of 3D Seismic.

The program is 70% complete and is a substantial part of the largest exploration 3D Seismic program ever undertaken within this region of the Cooper Basin.

In addition to providing valuable data targeting gas/condensate and oil accumulations flanking the western rim of the Patchawarra Trough, the 3D Seismic will also provide an important data set for the development of the JV's existing discoveries.

EIV has identified three priority CBM pilot program areas within its 100% owned Queensland ATPs 817 and 818 which will be the subject of appraisal within the next six months. These projects are in addition to the joint ventures operating over ATPs 613 for which the first two core holes have been completed and ATP 814 where two sets of four well projects are programmed to commence in June 2007.

The Directors of Energy Investments Limited are especially pleased that they have been able to negotiate a very favourable financing package to allow for the development of the Company's extensive portfolio as outlined in its announcement on 28 February 2007.

Managing Director, Sharif Oussa said "This financing will allow the Company to add value to its quality assets while retaining Shareholder value."