China Prioritizes Use of Natural Gas by Vehicles, Ships

Exoma Energy (ASX:EXE) has got the Queensland government's indicative approval to sell a 10% stake in its five Galilee Basin permits to China's CNOOC.

With the government nod, the deal has already received two regulatory approvals including the FIRB. It is now subject to the Chinese government giving the green signal.

The transaction is part of a farm-in agreement reached between the two in September under which CNOOC subscribed to 62.1 million of Exoma's shares at A$0.172 each, representing a 63.8% premium to its trading price then.

In addition to the equity interest, CNOOC would also fork out A$12.7 million to fund Exoma's share of exploration costs at its Galilee Basin project in return for an increase of CNOOC's share to 60% from 50%.