Origin Updates on Purchase of Woodside's Otway Interest

Origin has provided the following update on its agreement to acquire Woodside's 51.55% interest in the Otway Gas Project that was announced on November 2, 2009.

The transaction with Woodside was subject to pre-emptive rights held by the other joint venture parties which allowed those parties to proportionally increase their interest in the joint venture on terms equivalent to that agreed in the Origin-Woodside transaction.

Benaris International Pty Ltd has advised that it will exercise its pre-emption right in relation to some of its interests. CalEnergy (Gas) Australia Ltd has elected not to exercise any of its rights.

With both Origin and Benaris as purchasers, Origin's share of the purchase price will be reduced from $712.5 million to $507.2 million and interests in the Otway Gas Project after completion will be as follows:

  Origin Benaris CalEnergy
Development Joint Venture 67.23% 27.77% 5.00%
Exploration JV (T/30P and VIC/P43 67.23% 27.77% 5.00%
Exploration JV (T/34P) 82.30% 12.70% 5.00%

Woodside's sale of its Otway Gas Project interest remains subject to satisfaction of a number of conditions precedent including assignment of third party contracts. It is expected that completion will occur by the end of 2009. On completion the effective date will be July 1, 2009 and the purchase price will be adjusted for the net impact of costs and earnings between the effective date and completion.