Origin in US$50m farm-in with Salamander
Origin Energy Limited (ORG) said that it would pay US$50 million to further the development of five explorations blocks across Laos, Thailand and Vietnam as a part of a farm-in agreement with UK oil and gas explorer Salamander Energy.
Origin said it could up the investment by a further US$40 million if exploration is successful to be spread over the current financial year and FY11.
In return, Origin added, Salamander Energy would have the right to acquire an interest in one of its exploration blocks in the region.
The company said the drilling of wells would begin early in the new-year in four of the five blocks with an operators estimate of oil in excess of 400 mboe.
Origin’s managing director, Grant King, said it would increase Origin’s exposure to supplying gas to the rapidly growing region.
“We are pleased to engage with Salamander, a company that has extensive experience operating in south-east Asia, and look forward to working with the company to develop opportunities in this region of growing energy demand,” Mr King said.
At the close Thursday, Origin shares were trading at $15.96.
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