Sunshine Sells Roma Shelf Assets to Santos

Sunshine Gas has executed a binding Heads of Agreement with Santos Limited for the sale of its 15% interest in the Roma Shelf for a consideration of A$10 million cash. However, Sunshine has retained the prospective oil interests in the Alton area in the southern Surat Basin. The sale is subject to Sunshine Gas' shareholder approval, but will otherwise be effective from May 1, 2006. Sunshine Gas acquired the Roma Shelf and Alton area assets in 2003 for A$4 million.

Sunshine Gas Managing Director Tony Gilby said "the sale will allow the Company to focus on establishing the Walloon Coal Seam Gas play within its adjacent 100 percent-owned ATP 795P and ATP 767P acreage".

"In addition, the Company will be in a strong financial position to capitalize on near term growth opportunities currently recognized within Sunshine's existing asset portfolio," he said.

"These include the company's prospective UK joint venture where drilling of the Wellington 1 oil exploration wildcat well is scheduled to get underway in early July.''