Queensland Energy Resources Ltd is a new company formed by Sandefer Capital Partners LP, a U.S.-based manager of investment capital, focused on the energy industry.

Texan oil investor Jeff Sandefer, the project's major backer, placed the embattled company into receivership last December having invested $34 million in the project in May.

Sandefer was scheduled to invest more on the completion of a number of crucial preconditions, such as approval for the oil shale project's environmental impact statement, which failed to make the grade.

This combined with a $6 million cost blowout associated with a shutdown of the Stuart plant has led to the cash crisis.

The receivers and managers were appointed in early December 2003 and the announcement marks the successful completion of the sale process.

"This is an extremely positive result for the business going forward," said receiver David Winterbottom of Ernst & Young.

"Everyone has worked exceptionally hard over the period of receivership to ensure that the business could be sold as a going concern. From this perspective, an excellent outcome has been achieved."

Completion of the sale and formal transfer of the business to Queensland Energy Resources is expected mid-March 2004 subject to approval by the Foreign Investment Review Board and other usual transfer conditions.