Triple Energy Inks MoU for BSP to Invest $6M in Firm's CSG Project in China

Australia's oil and gas exploration company Triple Energy Limited (TNP, Company) reported Wednesday that the Company has entered into a Memorandum of Understanding (MoU) with Blue Sky Power Holdings Limited, (BSP), a Hong Kong based natural gas distributor with operations in China to invest up to $6 million into TNP and its Coal Seam Gas Project in China, subject to confirmatory due diligence over the next two weeks.

TNP has received payment of a non-refundatble exclusivity fee of $200,000.

The MoU contemplates that should the transaction proceed, $2 million will be advanced to a TNP subsidiary by way of a loan from BSP followed by placement of shares in TNP at $0.0046 (AUD 0.005) per share (subject to shareholder approval where necessary) such that BSP's holding in TNP reaches 19.99 percent. This shareholding will be subject to a 12 month voluntary escrow period.

A rights issue will be arranged in due course at a price of $0.0056 (AUD 0.006) to raise up to $5.57 million (AUD 6 million). This rights issue will be fully underwritten by BSP. The MoU includes the appointment of two Directors to the Board of TNP in due course, with TNP's senior management team to remain in place.

BSP already has a substantial energy portfolio in China and thus TNP's strategy and coal seam gas project in China is complementary to this business model. BSP is actively transforming into an innovative natural gas provider and distributor with integrated clean energy solutions. It is engaged in the development of natural gas utilization projects in China, including LNG/CNG stations and gas supply projects for industrial parks and residential communities. BSP has entered into a number of MoUs for gas projects in Jiangsu, Shandong, Hainan, Liaoning and Hubei in China. These projects are either located near gas sources or are aligned with the government's strategies to encourage clean energy application therefore creating substantial market potential. BSP is listed on the Hong Kong and Singapore Stock Exchanges.

Canaccord Genuity is acting as the exclusive financial advisor to TNP on this transaction.

TNP's Chairman, Paul Underwood said, "TNP welcomes this proposal and MoU by BSP. We have been working with BSP for some time and should this transaction proceed, it should see the next two wells drilled in the very near term. BSP has already conducted primary due diligence on this project and share TNP's enthusiam for the prospect of pilot gas production from the next two wells in early 2015. The non refundable exclusivity fee is a demonstration of their confidence in the transaction completing and we look forward to finalization of confirmatory due diligence."


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
United States Houston: Account Rep, Bus Dev, Sr
Expertise: Business Development|Sales
Location: Houston, TX
Business Development Manager
Expertise: Business Development|Construction Manager|Sales
Location: Tempe, AZ
SXL- Manager, Business Development
Expertise: Business Development
Location: Newtown Square, PA
search for more jobs

Brent Crude Oil : $50.47/BBL 0.98%
Light Crude Oil : $49.72/BBL 1.09%
Natural Gas : $2.76/MMBtu 1.09%
Updated in last 24 hours