Queensland Gas Company Limited (ASX:QGC)(PINK:QGSCF) To Explore New Coal Seam Gas Potential With Full Support Of Roma (ASX:RPM) Board

Thursday July 17 2:28 PM

Brisbane, Australia, July 17, 2008 - (ABN Newswire) - The superior offer from Queensland Gas Company Limited (ASX: QGC.AX)(PINK:QGSCF) for Roma Petroleum (ASX: RPM.AX) ─ an offer unanimously recommended by the Roma Board ─ would lead to a concerted exploration focus on tenements prospective for coal seam gas, QGC Managing Director Richard Cottee said today.

QGC's priority focus will be on seeking to commercialise any coal seam gas reserves that are discovered as soon as possible, in the event of QGC gaining control of Roma Petroleum.

The acreage covered by Roma Petroleum's PL 171 in the northeast Surat Basin is prospective for coal seam gas, and close to QGC's ATP 651P and ATP 574P.

"The proven track record of QGC is one of strategic partnerships and action to create value for shareholders,'' Mr Cottee said. "I welcome Roma Petroleum's shareholders to QGC to participate in another chapter of growth.''

A supplementary bidder's statement from QGC is being sent to Roma Petroleum shareholders, who are urged to sign and return the accompanying acceptance form to accept QGC's recommended offer. The bidder's statement explains why QGC believes its offer for Roma is superior to an offer from Bow Energy.

Roma directors have accepted the offer for all the Roma shares they hold or control. QGC's relevant interest in Roma Petroleum had risen to 30.70 per cent of Roma Shares by 17 July 2008.

Roma Chairman Mr Bill Siller said the Board of Roma Petroleum had examined the competing bids and concluded the 11 July QGC revised offer as superior to a 9 July scrip offer from Bow Energy.

Mr Siller has explained the Roma Board's position on the respective offers in relation to liquidity, conditionality, tax, assets, profitability, strategy, management and future upside.

QGC's offer, which is unconditional, comprises 11 cents cash and 0.0177 QGC shares for each Roma share. "In recent times, QGC's management has demonstrated a significantly better track record with regards to creating shareholder value,'' Mr Siller said in a 15 July ASX statement.

"Since May 2005, QGC's share price has increased by 12.5 times while Bow's share price has increased by 2.4 times.'' Mr Cottee said the fundamental value in QGC's offer is well understood by Roma directors, and by Roma's largest shareholder, Oil Drilling and Exploration Limited. OD&E had a relevant interest in 19.16 per cent of Roma shares before accepting QGC's offer.

Roma shareholders who accepted the Offer on or before 11 July 2008 will receive the increased consideration no later than 11 August 2008. Other Roma shareholders who accept the Offer after 11 July 2008 will receive the increased consideration no later one month after their acceptance.

About QUEENSLAND GAS COMPANY LIMITED:

QGC is a publicly-listed gas production company that is focused on becoming an integrated energy supplier in Australia. The Company's successful exploration and appraisal activities have provided a solid foundation for future growth, with ample reserves of coal seam gas ready to meet Australia's growing demand for clean, efficient energy.

Contact:
Information for Media: 
Mr Hedley Thomas
General Manager
Communications and External Relations
Direct: +61 7 3020 9043
Mobile: +61 417 797 419

ASX Contact: 
Mr Mark Anning
Company Secretary
Direct: +61 7 3020 9012

Information for investors:
Mr Ian Davies
Chief Financial Officer
Direct: +61 7 3020 9040
 


Source:

QUEENSLAND GAS COMPANY LIMITED

Copyright (C) 2008 ABN Newswire. All rights reserved.
ABN Newswire

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