Shares in Drillsearch Energy Limited
(ASX:DLS) climbed over 11 per cent yesterday on news the explorer had formed a $130 million joint venture with British company, BC Group.
The JV is for the exploration and development of unconventional shale and tight gas resources in the Cooper Basin.
Under the JV a wholly owned subsidiary of BC Group, QGC, can acquire a 60 per cent interest in the Drillsearch permit ATP940P through committing to a five year $130 million, three-stage exploration, pilot production and appraisal program.
QGC is to fund $90 million of the first $100 million spent and to be issued 31.6 million Drillsearch share options, around 9.9 per cent of the company, at a strike price of 62 cents per share.
Yesterday shares in Drillsearch Energy climbed 11.32 per cent to close at $0.59.
In the first half of the 2011 financial year, Drillsearch Energy narrowed its net loss to $4.4 million.
