The 9 million Convertible Notes raising $3.6 million were allocated so the company could complete the acquisition of the Interstate Energy group of companies, comprising 15% interest in the Roma oil and gas producing field s and associated infrastructure in the Surat Basin in Eastern Queensland. Santos as operator of the field holds the remaining interest of 85%.
The second tranche, being 5 million Convertible Notes to raise $2 million, will be issued following shareholder approval at the Annual General Meeting in October 2003.
Sunshine estimates that the 15% interest represents about 4 petajoules (pj) of proven and probable reserves of gas with around 12pj of total proven, probable and possible gas reserves.
The deal includes access to production infrastructure which should lead to the early development of the company's nearby Overston 1 gas discovery.
Earlier this year Sunshine Gas sealed a $10.5 million farm-in with US independent oil and gas company Samson International, which paved the way for the development of Overston - its maiden gas discovery.
Samson will be earning between 50%-60% interests from its $10.55 million exploration spend in the Sunshine licences in Queensland. This is the Australian market entry for Samson.