Bow builds Don Juan stake

QUEENSLAND explorer Bow Energy has purchased all of the shares in coal seam methane junior Roma CBM.
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Roma CBM had been earning the right to a 10% direct working interest in the Don Juan CSM joint venture.

The deal will increase Bow's interest from 45% to 55% of the project. Bow also operates the project.

The consideration for the sale is 3.25 million Bow shares, which are voluntarily escrowed for one year from the date of issue, in exchange for all of the shares in Roma CBM.

Located immediately west of Sunshine Gas's Lacerta CSM development, the Don Juan project is in Phase 1 of a reserves certification drilling and evaluation program.

It has to date drilled three production wells and is on its third core hole.

Roma's farm-in obligations are to fund 20% of the cost to drill and equip three production wells for pumping and three core holes to earn its 10% equity in the project.

In addition to the farm-in work program, the post farm-in joint venture Phase 1 planned drilling programs consist of a minimum of three additional core holes and eight production wells for this year, with the target reserves certification of up to 200 petajoules for the project by the end of 2008.

The nearest natural gas pipeline is 8km east of the permit.

Following Bow's purchase of Roma CSM, the Don Juan partners are now Bow Energy 55% (operator) and Victoria Petroleum 45%.