After a disappointing workover program on their Canning Basin permits last year, Kimberley Oil (KBO) has joined the ranks of potential CBM explorers after striking four farmin deals in Italy and France.

The deals with UK group Heritage Petroleum plc, three in France and one in Italy, will give KBO the opportunity to achieve up to 75% equity in the projects.

A new management team looked for new horizons after a workover program failed to yield incresed oil production from the depleted Canning Basin oil fields.

Kimberley said the agreements, which are subject to the completion of due diligence and the granting of titles, represent a low cost entry point for it to get into the rapidly expanding CBM/CMM industry in Europe.

The four projects cover approximately 2.3 million hectares and take in major historical coal producing areas estimated to host several trillion cubic feet (tcf) of coal derived methane.

The essence of the agreements is that Kimberley may earn up to 75% interest by completing of a reservoir study within 18 months from the granting of each title. These are estimated to cost approximately A$160,000 each, with expenditure being capped at A$350,000 per title.

KBO can withdraw at any time with pro-rata ownership based on expenditure to date.

The farmin areas are: Bleue Lorraine, north eastern France; Gaz de Saint Etienne, eastern France; Gaz de Gardanne, south eastern France; and Sulcis, southern Sardinia, Italy.

KBO chief Alan Flavelle said although a capital raising would be eventually required to take the deals through to their full conclusion, the impending sale of their mothballed onshore drilling rig (formerly belonging to Gearhart) and the sale of industrial land in Derby would not make a raising necessary until next year.

Flavelle said both he and exploration manager John Karajas had CBM experience that collectively covered the Bowen Basin, western Europe and the United States. Flavelle was previously involved with Median Oil which sold its assets to Elders in the 1980s and was a director of Omega Oil.

KBO management put a trading halt on its stock on Friday after a small flurry turned over 300,000 shares and pushed the illiquid stock from 1.5 cents to 2.3c.

KBO finished higher at 2.6c on 160,000 turnover when the trading halt was lifted yesterday.