2009-04-23-2009-04-23

To buy coal-seam-gas exploration permit in Queensland, Australia, gaining 1.1 Tcf 3P.

Origin Energy Ltd., Sydney, Australia, (Australia: ORG) plans to acquire interest in Australian coal-seam-gas assets from Sydney, Australia-based Pangaea Group of Cos. for US$470 million (A$660 million) in cash. The assets include 100% cent interest in exploration permit ATP 788P which contains the southerly extension of the highly prospective Undulla Nose coal-seam-gas area in Queensland. ATP 788P is south of Kenya Field, and approximately 20 kilometers from the Talinga, Argyle and Berwyndale South fields. Origin will fund the deal from existing cash reserves. Pangaea will receive a 75% beneficial interest in areas that are stratigraphically deeper than the Walloons coal measures. Proved, probable and possible reserves are approximately 1.1 trillion cubic feet of gas equivalent. Further contingent resources include an additional 471.5 billion cubic feet. Due to Origin's joint-venture arrangement with ConocoPhillips, Australia Pacific LNG has the right to acquire the interest in ATP 788P prior to completion. Austral Pacific is developing Australia's largest proposed coal-seam-gas-to-liquid-natural-gas project. Pangaea chairman Paul Fudge says, "Origin has strong credentials and has demonstrated leadership in the development of coal-seam gas assets. The transaction builds on our pre-existing relationships with Origin and we look forward to working with them in the future." Origin managing director Grant King says, "The transaction is evidence of the continuing consolidation of the coal-seam-gas industry, principally in Queensland. The acquisition of this permit is particularly attractive for Origin. It is located next to proven coal-seam gas fields in the Undulla Nose sweet spot which will be part of Austral Pacific's planned coal-seam-gas-to-liquid-natural-gas project and we have a solid understanding of the exploration and productive potential of this area." King add the assets are near gas-transmission infrastructure and Origin's Darling Downs power station development.