TORONTO (Commodity Online): Canada-based, Batavia Energy Corp formerly known as Ausnoram Holdings Limited has completed an arm's length business combination with Batavia Energy Inc.

The parties completed the business combination by way of a three-cornered amalgamation, wherein Condelta Inc., a wholly-owned subsidiary of the company amalgamated with Batavia and have continued as one company under the business corporations act (Ontario) under the name Batavia Energy Inc.

Batavia, the wholly-owned subsidiary of the company, will continue to pursue the natural gas exploration and development projects of coal bed methane gas in Indonesia and shallow gas in Alberta.

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Pursuant to the amalgamation, the company will issue 20,520,410 common shares at a deemed price of USD 0.20 per share, to the holders of the common shares of Batavia to acquire a 100% interest in Batavia.

In addition, each of the current holders of the 1,000,000 stock options, a CDN$750,000 principal amount convertible promissory note and a CDN$75,000 principal amount promissory note of Batavia will receive an equal number of replacement stock options, convertible promissory notes and promissory notes of the company, which shall be exercisable on the same terms and conditions as the Batavia Options and Batavia Notes, as applicable.

Batavia and its partners on the Sekayu CBM Block spudded the first commercial CBM well in Indonesia in the fall of 2009. The results from the CBM-SE-2 well indicated an economic project, and a second well is planned for the first half of 2010.

Batavia is carried on the Sekayu CBM Block up to US$13 million of field activities. In addition, Batavia will start field activities in 2010 related to its Alberta shallow gas project.

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