2009-08-15-2009-02-01

To buy company, gaining 41 Bcfe 2P in New South Wales.

Australian integrated utility AGL Energy Ltd. (Australia: AGL) plans to acquire Sydney Gas Ltd. (Australia: SGL) for approximately A$171 million (US$116 million) in cash. AGL will will pay A$0.425 per Sydney Gas share, a 55% premium to the closing price of A$0.275 on Dec. 22 and a 117% premium to the 30-day volume weighted average price. Sydney Gas focuses on developing coal-seam gas resources in New South Wales. It holds four petroleum exploration licenses in a joint venture with AGL covering 17,000 square kilometers and five petroleum production leases covering 213 square kilometers. SGL reports proved reserves of 41 billion cubic feet equivalent proved plus probable. AGL managing director Michael Fraser says, "Combining this acquisition with our recent purchase of the Gloucester Basin acreage will give us the opportunity to further increase our ownership of gas reserves in our core New South Wales market. The concurrent development of the Camden, Hunter and Gloucester gas projects will provide AGL with strategic benefits, optionality and a substantial source of long-term wholesale gas supplies." The deal is expected to close in February. ABN Amro is financial adviser to AGL.