These farm-in agreements cover a 50% interest in coal bed methane (CBM) and natural gas in the Westphalian Measures (PEDL 100), which comprises an area of approximately 230 square kilometres of South Wales.
Tasman will also acquire a 50% interest (potentially increasing to 60% if expenditure exceeds £1m) in an untested large interpreted oil/natural gas target that occurs in Devonian–age Measures beneath the Westphalian Measures in PEDL 100 (the conventional hydrocarbon area).
To earn its interest in each joint venture Tasman must drill, fracc and test seven CBM wells before March 2006. While on the traditional hydrocarbon fields the company must conduct a new detailed seismic survey over the target area within 15 months, and drill one well within 30 months.
As part of the consideration, Tasman will issue to Coastal (or its nominee) one million options to acquire fully paid ordinary shares in Tasman exercisable at 20 cents per share at any time up to 28 February 2006.
Tasman proposes to raise the initial funding necessary as it develops the business of subsidiary company Eden Energy, which is assembling a portfolio of renewable energy assets, primarily geothermal (hot rock) opportunities. It plans to float Eden in the foreseeable future.
