Australia-based Nido Petroleum (Nido or the Company) disclosed Monday that the Company has sold non-core assets in the Philippines to a Philippine-incorporated resources focused company Colossal Petroleum Corporation. Miro Advisors assisted the Company with the sale process.
Nido has signed sales agreements in relation to its participating interests in Block A, Block B, Block B Retention and Block D Retention of Service Contract 14 together with its participating interest in Service Contract 54A. Under the terms of the agreements, Nido will receive a cash sum of $2.75 million (AUD 3 million) in consideration for the divestment of the assets, and Colossal Petroleum Corporation will assume all of Nido’s share of oil producing wells, infrastructure and oil field platforms as well as the liabilities in the relevant blocks within Service Contract 14. The agreements remain subject to relevant Joint Venture and Government approvals.
Commenting on the transaction Phil Byrne, managing director, stated:
"This transaction is part of our stated strategy to divest and realize value for our non-core assets and the sale price reflects a fair market value for these assets. The successful conclusion of the sale will allow management to focus on the development of our key assets while the funds obtained will be applied towards Nido’s forward work program. We have an exciting and busy time ahead with four exploration wells to be drilled in the next 12 months and our focus remains on creating value for shareholders via a managed and disciplined approach."
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