Australia's Triple Energy Inks Updated MoU with Blue Sky Energy for China CBM Project

Australia based Triple Energy (TNP) has signed an updated MoU with Hong Kong‘s natural gas distributor Blue Sky Power Holdings Limited (BSP) relating to Triple’s China coal bed methane operations.

In August the two companies inked MoU under which Blue Sky Power will invest up to $6 million into the Australian firm and its coal seam gas project in China.

As per the updated binding MoU, Blue Sky through its subsidiary agreed to subscribe 158,000,000 Tranche 1 placement shares, representing approximately 19.90% of the issued share capital of Triple Energy after the completion of the placement. The total consideration is A$790 000 at a price of approximately A$ 0.005 per Triple share.

The placement is expected to be completed by mid-December.

Blue Sky will also provide an interest free loan of A$500,000 to facilitate the preparation for the drilling of two wells in Hegang as soon as possible. This loan is convertible into TNP shares at a price of A$0.006.

Triple Energy holds an 80% interest in a Cooperative Joint Venture (known as Aolong Energy (Aolong JV) with LongMay Coal Mining Company, biggest provincially-owned state-owned enterprise in Heilongjiang province. The JV was formed with the objective to de-gas the coals in LongMay’s coal mining operations in the Daqing Coal Basin and has a life of 45 years