Cooper Energy Limited (Cooper) is pleased to report that it will acquire 56,205,942 ordinary shares in Bass Strait Oil Company Limited (Bass) through a private placement, bringing its total holding in Bass to 16.7%. Additionally, Cooper has committed to sub-underwrite a proposed pro rata rights issue by Bass, which could bring its holding in Bass to 19.9%.
Cooper and Bass have also agreed in principle to enter into a Technical Services Agreement under which Cooper may supply technical and commercial support services to Bass.
Bass has a portfolio of assets in the Otway and Gippsland Basins which are complementary to Cooper's interests in that area. The acquisition of a significant shareholding in Bass is consistent with Cooper's strategic focus on eastern Australian gas opportunities.
The Cooper Energy Managing Director, Mr David Maxwell said “The investment in Bass is driven by Cooper's view of the underlying prospectivity and value of the Bass portfolio which we do not think is fully reflected in the current Bass share price. Cooper is pleased to be able to offer, through the planned Technical Services Agreement, technical support to Bass and we look forward to working with Bass to realise the value of the company's assets for the benefit of all shareholders.”