Drillsearch Energy Limited Announce Sale Of Gippsland Basin Permits To Larus Energy Pty Limited

Drillsearch Energy Ltd is pleased to announce the sale of its three Gippsland Basin Permits being VIC/P63, VIC/P64 and T/46P held by it's wholly owned subsidiary Great Artesian Oil and Gas Pty Limited to Larus Energy Pty Limited (Larus).
Consideration for the sale will be A$2.3m comprising cash of A$700,000 with the balance payable in shares in a proposed new entity for which an ASX listing is planned in 2011. The listed entity will be the legal and/or beneficial direct or indirect owner of 100% of the interests in the Gippsland Basin Permits.
The sale is conditional upon relevant government approvals and the successful ASX listing of the proposed new entity. Should the listing of the proposed new entity not occur within an agreed timeframe, then all title rights to the three Gippsland Basin permits will transfer back to Drillsearch.
Managing Director Brad Lingo stated "The sale of our interest in the three Gippsland Blocks to Larus Energy Pty Limited again highlights our focus on our Cooper-Eromanga Basin assets. The consideration ensures that Drillsearch is fully reimbursed for its investment to date in these permits and provides the company with additional capital to invest in the strong near term growth assets we are developing in the Western Cooper Basin. This capital is targeted for Cooper Basin projects that we see generating significant cash flow and returns in the near future."
Source: Press release