Northern Territory explorer Global Oil & Gas (ASX: GLV) has expanded into Western Australia’s Canning Basin by taking an option to acquire 20% of a private exploration company holding large oil and gas acreage.
The company has an exclusive option for the stake in privately-owned Goshawk Energy, which holds nine exploration licences covering 40,800sq km, representing the single largest landholding in the proven onshore basin.
Goshawk also has a 20% joint venture with Andrew Forrest’s Squadron Energy, which holds 35,700sq km of ground. Goshawk is the operator.
In addition, the private company will provide technical expertise for Global’s Northern Territory exploration.
Goshawk was established in 2011, led by a group of experienced oil and gas professionals with a strong track record in the exploration and development of oil and gas projects in Australia and internationally.
The company has built a significant portfolio of petroleum assets in WA, varying from greenfield exploration to ready-to-drill prospects and discoveries in proven world-class hydrocarbon basins.
Nearby licence areas in the Canning Basin are seeing advanced work by several resource companies including Buru Energy (ASX: BRU).
Alliance gives Global “significant” exploration platform
Global Oil & Gas, previously operating in Mauritania, has lately been focusing on the Georgina Basin in the NT.
The company believes the onshore southern Georgina Basin is one of the most prospective onshore basins in Australia with potential for both very large conventional and unconventional oil and gas deposits.
The basin covers more than 100,000sq km in the NT and western part of Queensland.
Global director Patric Glovac said the alliance with Goshawk gives the company a significant exploration and development growth platform.
“The assets represent a key part of Western Australia’s onshore oil and gas potential which is becoming more and more prevalent as energy security needs increase due to the current state of the world,” he said.
Global, if it exercises its options, will pay $975,000 cash and issue 127.57 million new shares (or a number equalling 19.7% of Global’s register) with one-for-three attaching options.
Global said it has firm commitments to raise $1 million from professional and sophisticated investors and is now working on the terms for a rights issue.