On 7 March 2018 AustChina Holdings Ltd reported that it has signed an Option Deed for the sale of its 100% owned subsidiary company Surat Gas Pty Ltd. The purchaser, which is undisclosed at this stage of the deal, paid AustChina AUD 10,000 to enter a 21 day window to exercise the option, valued at AUD 6.5 million. The deal will remain subject to the purchaser obtaining finance to complete the purchase and it has 60 days to do so (until 7 May 2018). Surat Gas holds 50% interest in three Adavale-Galilee-Eromanga basin permits: ATP 1072-P, ATP 1095-P and ATP 1098-P.    ATP 1072-P covers an area of 6,525 sq km and was awarded on 24 January 2013.Â  It is scheduled to expire, or be eligible for renewal, in early 2019. The block was originally released as PRL 2010-1-3, as part of the 2010 Queensland Acreage Release.  ATP 1095-P, which covers an area of 1,620 sq km, was awarded on 1 June 2015 and is scheduled to expire on, or be eligible for renewal by, 31 May 2019. The block was originally offered as PLR2010-2-4 in the 2010 Queensland State Acreage Release.  ATP 1098-P covers an area of 5,376 sq km and was awarded on 1 June 2015.Â  It is scheduled to expire on, or be eligible for renewal by, 31 May 2019.Â  Surat Gas applied for the licence on 27 September 2010, after it was offered in the 2010 Queensland State Acreage Release.  There are a number of wells within ATP 1072-P and ATP 1098-P, drilled prior to the permits being awarded. However no discoveries have yet been made, with all wells either dry or encountering hydrocarbon shows.  Current participants the exploration permits are: Eastern Gas Holdings Pty Ltd (50% + Operator) and Surat Gas Pty Ltd (50%). Once the deal has been completed, the listed participants are not expected to change, but Surat Gas will be held under a new parent company. AustChina will no longer hold interest in any exploration licences as its focus moves towards broadening investment opportunities in the resources and energy sector.   Background    In 2012 Sierra Oil Ltd acquired Surat Gas from Coalbank before Coalbank took back the company in May 2015. In early 2016 Coalbank reported that it was seeking opportunities with potential partners in ATP 1072-P, ATP 1095-P, and ATP 1098-P to conduct exploration through multi-well drilling programmes and 2D seismic surveys.   Renaming of Coalbank to AustChina Holdings took place on 7 August 2017. Following which, AustChina completed a farm-out arrangement by transferring 50% interest and operatorship in the permits to Eastern Gas Holdings Pty Ltd, a wholly owned subsidiary of Ranger Resources Ltd.Â  At the time, Surat Gas reported that Eastern Gas would be required to spend a minimum AUD 30,000 over a three month period in order to earn its interest.Â  The activities undertaken and funded included geological and geophysical data reviews.Â  In addition, Surat Gas were to be carried for a further AUD 650,000 in exploration expenditure. The permit areas remain heavily underexplored.   Â   Â 
Australia, ATP 1072-P