Australian energy explorer to invest in California gas discovery

Magnum Gas and Power has entered into a Letter of Intent (LOI) with Gasfields LLC to farm in to the Tulainyo high-pressure gas project in California’s Sacramento Basin.

The Australian-based energy and gas exploration company will have to invest US$3.4million (A$4.57 million) into Gasfields, to pay for the initial farm-in well and equates to a 60 per cent shareholding.

Gasfields is a wholly-owned subsidiary of Bombora Natural Energy, a private company based in Perth, whose shareholding in the company would reduce in line with the funding agreement with Magnum.

The project includes three wells across 13km2 of mapped land associated with gas seeps and gas encountered by historic drilling.

“We welcome Magnum’s investment in Gasfields and the Tulainyo project,” said John Begg, director and technical manager of Gasfields.

“We look forward to participating in what we believe will be one of the most exciting junior company-involved drilling programmes of 2017.

“The target is potentially a very large gas resource located near infrastructure that connects to one of the world’s largest domestic gas markets.”