Oil Basins Limited (ASX codes OBL, OBLOB or Company) is involved in exploration for oil and gas in the offshore Gippsland Basin waters of south-eastern Australia, the onshore Canning Basin of Western Australia and the offshore Carnarvon Basin waters of Western Australia, importantly (as stated in its Business Model) all assets are situated in good hydrocarbon addresses and all are strategically close or adjacent to existing or future development infrastructure.
The Company has since listed on the Australian Stock Exchange on 23 August 2006, significantly expanded its initial portfolio of two permits at very modest cost and now has formal title or Rights to earn interests in a portfolio of attractive drill-ready exploration assets. This portfolio presently includes three (3) offshore and two (2) onshore petroleum exploration permits in Australia – covering conventional onshore and offshore oil exploration & development and unconventional USG / USO projects as follows:
On 4 August 2010 the Company and Liquefied Natural Gas Ltd (ASX code LNG) signed a non-exclusive Strategic Alliance Agreement (SAA) in respect of natural gas, coal seam gas and shale gas in the Canning Basin, Western Australia for the purpose of evaluation and the appropriate development of projects and in particular an LNG production facility in the Canning Basin Region using feedstock from OBL.
Under the terms of the SAA, OBL will have the right, but not obligation, to invest in any such LNG project up to a maximum of 20% on an at cost basis, however this maximum becomes 30% should OBL and its JV consortia deliver certified 2P gas reserves of at least 1.0 TCF (in accordance with SPE definitions) within 4 years of work programs commencing in the field.
OBL is presently seeking Farmin Interest in both its Canning Basin highly prospective USG/USO properties and is prepared to share its SAA with the right partner (on mutually agreed terms).