Tuesday, 05 February 2008
As announced on 14 January 2008, Lucas completed a subscription for 52,505,665 ordinary shares in Sydney Gas Limited (SGL) at an issue price of 34c per share for a total cost of $17.9 million.
This, together with shares already owned, gives Lucas 61,802,102 shares, equivalent to 15.35% of its enlarged issued share capital.
The subscription price is less than the 38 cents per share previously announced, reflecting the recent trading price of SGL's shares and the benefits to Sydney Gas expected in the technical services agreement and drilling services agreement with Lucas. Otherwise the terms of the arrangements between Lucas and Sydney Gas remain as announced.
Allan Campbell, Lucas chairman and CEO said "We are very pleased to be working with Sydney Gas to assist it proving up more gas reserves and commercialising its coal seam gas. We have long believed in the coal seam gas potential of the Sydney Basin.