2009-08-19-2007-01-01

Proved:142.6 Bcf

AGL Energy Ltd., St. Leonards, Australia, (Australia: AGK) plans to acquire a 27.5% stake in Queensland Gas Co. Ltd., Brisbane, Australia, (Australia: QGC) for up to US$228.8 million (A$292 million) to block a hostile takeover bid by Santos CSG Pty Ltd., a subsidiary of Santos Ltd., Adelaide, Australia (Nasdaq: STOSY, Australia: STO). Santos has offered to acquire Queensland Gas for A$1.26 per share in a deal valued at US$451.5 million (A$606 million). Queensland chairman Bob Bryan rejected the bid as "opportunistic and patently inadequate" at just 15% more than the Queensland share price. Queensland has accepted the AGL offer, and AGL has agreed not to acquire more than 30% of the company for two years. Queensland Gas' interests and petroleum leases are in the Surat Basin in southern Queensland, and the company has a current focus in the Berwyndale South Field. The company also has pilot wells the Argyle East prospect 25 kilometers southwest of Chinchilla, Australia. Total proved reserves are 142.6 billion cubic feet of gas, 258.7 billion probable, and 1.3 trillion possible for total reserves of 1.7 trillion cubic feet of gas. Queensland Gas chairman Bob Bryan says, "We are delighted that AGL has recognized the value of Queensland Gas and welcome them as a major shareholder."