Australian firm to increase stake in Java gas project

Australian Stock Exchange-listed mining firm New Holland Mining announced on Thursday it had entered into an option agreement to increase its interest in a consortium that managed an offshore gas project in West Java known as ?L Parigi Project? from 20 percent to 75 percent.

The company said it had a right to acquire further 55 percent shares in the consortium for the period of 6 months, expiring in 24 November 2006.

Upon exercising the option, New Holland will be required to issue 175 million ordinary shares, or 19 percent of the company?s issued capital at 0.5 cent per share to the vendor Intrepid Capital Holdings Limited, which holds 55 percent of the consortium.

In January 2006 the company announced that a consortium in which it had 20 percent stake, had been declared as lowest price bidders out of three companies applying for a 15-year contract for the enhancement L Parigi Project, which belonged to state oil and gas company Pertamina. However, the consortium had not been able to complete the edal as it was still waiting for ?letter of appointment from Indonesian Authority?.

The company did not give further detail about the L Parigi Project. (alex/godang)