Southeast Asia-focused Risco Energy Investments Pte Ltd (Risco) announced Monday that the company has executed a Sales & Purchase Agreement (SPA) to acquire 100 percent of Galoc Production Company WLL (GPC) from ASX-listed Otto Energy. GPC has a 33 percent working interest and is operator of Service Contract 14C, which contains the producing Galoc Field located offshore Palawan, Philippines (Galoc).
Under the SPA, Risco has agreed to pay total consideration of $101.4 million, based on an economic date of July 1. Of this total consideration, a deposit of $10.14 million has already been paid. Transaction completion is conditional upon Otto Energy’s shareholder approval at a General Meeting, which is expected to occur no later than December. Otto’s Board of Directors is unanimously recommending the deal to its shareholders. In consideration of the purchase price and to secure the deal, Risco has procured a break fee and certain rights customary with a transaction of this nature.
Who is Risco Energy?
Risco is a Singapore incorporated company focused on upstream oil and gas in ASEAN (Association of Southeast Asian Nations). With a strong and clearly demonstrable track record of both operational enhancement and value generation, Risco’s team of professionals possess an outstanding mix of technical, financial and in-country expertise.
Historically the Risco team partnered with Otto in 2011 to help Otto secure the operatorship of Galoc from Vitol. The Risco team played a key role in delivering operating enhancements that led to Galoc’s production uptime increasing by more than 20 percent and 2P reserves by 100 percent within a period of just 15 months.
Risco Energy’s History of Holding Oil & Gas Assets
Risco’s history of oil and gas investment dates back to 2010. It has managed and operated assets in Philippines, USA and Indonesia. The senior Risco management team has some 200 years collective experience of managing oil and gas assets in Asia, Australia and the USA.
Risco’s direct and indirect participation in oil and gas producing assets has spanned South Texas, Southeast Sumatra, Northwest Java, East Kalimantan, North Sumatra, Seram Island and onshore Central and South Sumatra, as well as offshore Palawan, Philippines.
Risco has invested in both conventional oil and gas production as well as unconventional production in coalbed methane (CBM) and shale/tight sands. Since 2010, it has executed over $500 million worth of deals.
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