New Holland extends option to increase stake in Java gas project

ASX-listed mining firm New Holland Mining Limited said Tuesday that it has extended its existing call option agreement to potentially acquire interest from 20 percent to 75 percent in an offshore gas project in West Java known as the ?L Parigi Projects?.

The Company said it has the right to call on the option to acquire a further 55 percent of the Consortium for a period of a further three months, expiring 23 February 2007.

Upon exercising the option the company will be required to issue 175,000,000 shares at 0.5 cents per share to the vendor Intrepid Capital Holdings Limited, which holds 55 percent of the consortium.

On 25 May 2006, the Company announced that it had entered into a call option agreement to potentially acquire a further 55 percent of the consortium for the period of 6 months, expiring in 24 November 2006.

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 deal as it was still waiting for ?letter of appointment from Indonesian Authority?.

The company did not give further detail about the L Parigi Project. (denny)