Latest News
- Conversion of the OBLOA options into OBL shares
The Company has had a number of requests to assist in the conversion the OBLOA options into OBL shares. So as to facilitate this conversion, wishes to advise that an OBLOA Option conversion form has been posted on OBL’s website: www.oilbasins.com.au.
- Canning Basin Oil to raise up to $5.95 million
- Subscription Offer Extended October 1, 2009 (PDF)
About Canning Basin Oil Limited
Canning Basin Oil Limited (“CBO” or the “Company”), formerly OBL Backreef No.15 Pty Ltd, is presently a wholly-owned subsidiary of Oil Basins Limited (ASX code OBL), and a unique unlisted public oil and gas exploration company with a specific undertaking to offer investors who are
- specifically sophisticated investors within the meaning of either section 708(8) or section 708(10) of the Corporations Act 2001 (Cth), and with
- the ability to make a Minimum Subscription of $10,000.00 for “Backreef OilCans, and specifically
- the Offer is not open for General Application
CBO provides investors with significant exposure to a low-overhead direct-investment vehicle with exceptionally high leverage to attractive upstream exploration opportunities by way of a structured farm-in with OBL.
The nature of the Company’s proposed Backreef OilCans is unique in that upon drilling-success defined by a commercial discovery they will be immediately entitled to a net profit interest (“NPI”) in each or both of the Backreef-1 and Emika-1 well prospects and immediately attract and accrue net production cashflow from the commercial success directly from these wells.
The funds raised via the Offer under the IM will become part of the Company’s working capital and thus be available to advance the long-term goal of CBO becoming a high leverage low-overhead explorer and producer within the Canning Basin, Western Australia.
The Board considers that CBO’s drill-ready Backreef-1 and Emika-1 well prospects provide the possibility of major ‘company-making’ discoveries.
Important Note & Disclaimer
You should read the entire Information Memorandum (“IM”) and take particular notice of the financial position of the Company, its joint venture arrangements, proposed exploration programmes, relevant technical information and the risks that are all set out in the respective Sections that follow. All of these factors will affect the future operations and activities of the Company. As a potential Applicant you should carefully consider these factors in the light of your personal circumstances (including your financial capacity and your investment and risk profile) and seek professional advice from your accountant, stockbroker, lawyer, licensed financial adviser or other professional adviser before deciding to invest in the Backreef OilCans offered under the IM.
Conditional Farm-Ins with Oil Basins Limited and Backreef Oil Limited
CBO has via a structured farm-in with OBL been conditionally assigned both 25% beneficial rights to the Backreef Area and 25% to Drilling Reservation 9, subject to the Company funding 100% of both the Backreef-1 and Emika-1 wells in the respective permits.
CBO has entered into formal conditional heads of agreements with OBL and the operator Backreef Oil Limited to finance a proposed two well 2009 Canning Basin drilling program, potentially commencing in October 2009, to drill both these wells.
The farm-in opportunity relating to Backreef-1 is conditional upon at least the Minimum Capital Raising amount of $3.0 million (including costs of Offer) of funds being raised by CBO. Should the Basic Capital Raising amount of $3.45 million be successfully raised, the Company has agreed to refund OBL backcost payments amounting to $400,000, whereas if the Minimum Capital Raising of $3.0 million only is raised such backcost payments shall be due and payable only on commercial drilling success. Should the Minimum Capital Raising of $3.0 million, sufficient to fund the Backreef-1 well, not be raised prior to 31 December 2009, this farm-in will effectively lapse.
All funds in total raised by the Offer if under $3.0 million will be refunded in full to Applicants.
The additional farm-in opportunity relating to Emika-1 is conditional upon the Maximum Capital Rasing amount of $5.95 million (including costs of Offer) of funds being raised by CBO. Should the additional $2.5 million, sufficient to fund the Emika-1 well, not be raised prior to 31 December 2009, the additional DR9 farm-in will effectively lapse.
Consequently, any funds raised by the Offer under the IM of between $3.45 million and less than $5.95 million will be refunded in full to Applicants.
All assignments of interest to CBO are subject to the normal regulatory and stakeholder consents.
IMPORTANT - this Offer has been extended until Monday 19 October 2009
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