Queensland Gas Is in Talks on Agreed Takeover Offer

By Angela Macdonald-Smith

Aug. 20 (Bloomberg) -- Queensland Gas Co., the local partner of BG Group Plc in a proposed liquefied natural gas venture in Australia, said it is in talks that will lead to an announcement on a proposed agreed takeover offer.

Queensland Gas halted its shares from trading pending the release of information on the bid, due today, the Brisbane-based company said in a statement to the Australian stock exchange.

AGL Energy Ltd. and Reading, England-based BG are the biggest shareholders in Queensland Gas, which produces natural gas from coal seams in northeastern Australia. Sunshine Gas Ltd., which holds coal-seam gas permits in the same area, halted its shares from trading yesterday pending a statement on a ``corporate transaction.''

Queensland Gas and Brisbane-based Sunshine Gas are among the participants in five rival ventures proposing LNG export projects in northeastern Australia based on coal-seam gas.

Richard Cottee, managing director of Queensland Gas, couldn't immediately be reached for comment.

Queensland Gas last month secured control of Roma Petroleum NL, another Brisbane-based oil and gas explorer, in an agreed takeover offer.

To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@bloomberg.net