OREANDA-NEWS. March 10, 2011. The Queensland government has given indicative approval for China National Offshore Oil Corporation subsidiary CNOOC Gas & Power to gain a 50% stake in five Exoma exploration permits.

Exoma and CNOOC entered into a farm-in agreement last year, under which CNOOC would commit to spending at least AUD50-million on coal seam gas (CSG) and shale gas exploration, to earn the interest in the five permits.

The two companies also incorporated the granting of an option to CNOOC to take a placement of 86,6-million shares in Exoma, at 31,5c a share, as well as 86,6-million options, exercisable at the same price. CNOOC has acquired a 5% interest in British Gas (BG)/QGC’s CSG tenements in the Surat basin and a 10% interest in one of the first two LNG Trains to be built by British Gas in Gladstone.