Ambassador Oil and Gas Ltd has exited its 52.5% stake in a potential gas field in Cooper's Basin, South Australia. New Standard Energy Ltd bought the said stake for USD42.5 million, according to Business Spectator.

The sale proceeds will fund Ambassador's exploration activities. Tino Guglielmo, the company's managing director, told DataRoom that the proceeds are expected to cover capital intensive work that will run for five years. Ambassador has retained a 47.5% stake in the gas field, the report said.

According to Guglielmo, his company is planning to buy USD1 million worth of land in south-eastern Colorado. The land in question potentially includes oil deposits that could be exploited through the same deal that Ambassador signed with New Standard, the report detailed.

The gas reserves in the Cooper Basin field are surrounded by an infrastructure that could be used to pipe gas from a well. Gugliemo says this means by 2015, gas could flow out from the Cooper Basin. Australian gas could be exported to China, Taiwan, South Korea and Japan when liquid natural gas facilities around the area will come on line, Business Spectator reported.

Guglielmo said: "The global LNG market is tapping into a very lucrative market in North Asia. These countries are willing to buy gas at a significant premium as they have no supply."