Adelaide Energy (ASX: ADE) is focussed on oil and gas exploration in the Cooper and Otway Basins of South Australia and the West Florence Basin of Colorado, USA.
Adelaide Energy pens agreement for acquisition of prospective Queensland acreage
Adelaide Energy (ASX: ADE) has executed a binding Letter of Agreement with the shareholders of two private companies with respect to the acquisition of 100% of the issued share capital of each of those companies.
The total consideration payable for the shares of Deka Resources and Well Traced is $2 million in cash and the issue of 15 million ordinary fully paid shares in Adelaide Resources.
Refundable deposits totalling $200k will shortly be paid to the shareholders of the companies with the balance becoming payable following the completion of a satisfactory confirmatory due diligence process and the parties entering into full form Share Sale Agreements.
DRWT hold interests in a number of onshore Australian petroleum exploration permits which are highly complementary to Adelaide’s current asset base and gas resource focused exploration strategy.
Adelaide Managing Director Carl Dorsch said the deal gives the company further exposure to the exciting multiple-play gas and oil prospectivity of the Cooper Basin’s Nappamerri Trough –in both South Australia and Queensland.
"We are pleased to now be working on both sides of the border with Beach Energy in its forthcoming unconventional gas focused exploration programs in these permits," Mr Dorsch said.
"Furthermore, DRWT’s acreage positions in the Surat Basin provide Adelaide with an increased exposure to unconventional gas in the form of CSG and also oil prospectivity.”
