Corrs Chambers Westgarth has advised Senex Energy Limited (Senex) in relation to its recently announced gas asset swap with BG Group subsidiary Queensland Gas Company (QGC).
Under the agreement, QGC and its joint venture partners, CNOOC and Tokyo Gas, will acquire Senex’s minority interest in the eastern Surat Basin petroleum permits PL 171 and ATP 574P. In return, QGC, CNOOC and Tokyo Gas will transfer to Senex their aggregate 100% interest and operatorship of western Surat Basin petroleum permits ATP 795, ATP 767 and ATP 889.
The QGC permits which are to be acquired by Senex lie adjacent to Senex’s current western Surat Basin permits, and form the basis of the Western Surat Gas Project. Senex will hold net 2P gas reserves of 488 petajoules on completion of the transaction.
Senex Managing Director, Ian Davies, stated “This is a win-win transaction. Combining QGC’s western Surat Basin assets with our own western Surat Basin acreage gives Senex the scale required to build a material Surat Basin gas business on our own terms. This transaction is a perfect example of our growth strategy in action.”
Completion of the transaction is expected by 14 December 2014, and is conditional upon a number of regulatory approvals, including the approval of the Foreign Investment Review Board.
The Corrs team was led by partner Bruce Adkins, who was supported by special counsels Paul Careless and Stuart Clague and Senior Associate Deb Brennan.
Corrs Partner Bruce Adkins said “This is a significant, strategically important transaction for Senex, and the Corrs team was delighted to work with Senex in making this transaction a reality.”
QGC was represented by King & Wood Mallesons.
For further information, please email Glenn Taylor or contact by phone on +61 2 9210 6593.