ESG yesterday acquired Hillgrove Resource’s interest in the Gunnedah Basin Gas Project in PEL 238 in return for 19.9%, or $9.8 million worth, of its issued ordinary shares.
Under the transaction, Hillgrove now owns 92.86 million ESG ordinary shares, 42.94 million zero coupon converting notes and 24.25 million three-year options exercisable at 15c each.
Should these notes and options be converted and exercised, Hillgrove said it would have a 28.15% fully diluted shareholding in ESG, an integrated natural gas and electricity production company.
“This is a transformational deal for Hillgrove, as it gives us a major stake in an energy portfolio that is strategic to New South Wales’ energy future,” Hillgrove managing director David Archer said.
Archer yesterday joined the Eastern Star board.
The Gunnedah Basin Gas Project, which covers more than 9000 square kilometres, is considered to be one of the largest onshore natural gas accumulations in Australia, totalling 17,000 petajoules of gas-in-place.
The remaining Gunnedah Basin joint venture partner is Gastar Exploration.
