Carnarvon Disposes off Remaining Oil Assets in Thailand for $58.2M
Carnarvon Petroleum Limited disclosed Thursday that the Company has entered into a Sale and Purchase Agreement (SPA) to divest its remaining 20 percent interest in the Thailand oil production concessions L44/43, L33/43 and SW1A (Thai assets).
Carnarvon has agreed to sell its remaining 20 percent interest in its Thai assets to the Berlanga Group for a total cash consideration of $58.2 million (AUD 68.5 million). The above amounts include working capital of approximately $8.2 million, subject to final completion adjustments.
The SPA was entered into with Berlanga Thailand Limited, a member of the Berlanga Group, and a deposit of $2.0 million (AUD 2.3 million) was received by Carnarvon upon signing the SPA.
The SPA is subject to satisfaction of standard terms and conditions, including receiving joint venture partner consents, executing completion documents and payment of the consideration. Completion is currently scheduled to occur on or before Feb. 16, 2015.
Carnarvon retains its $32 million receivable in the Thai assets, agreed to as part of the Loyz transaction announced in March.
Managing Director and CEO, Adrian Cook said, “This is a positive commercial outcome for the Company. Carnarvon’s already robust balance sheet will be strengthened with cash forecast to exceed $86.9 million (AUD 100 million) post-completion. On completion of this transaction we will have realized $91 million in the past year from the sale of our Thailand interests with up to a further $32 million to be received in the future. This has proven to be a very profitable investment and a powerful demonstration of our willingness to think and act differently.
With the sale, we are now entirely focused on maximising value in the North West Shelf of Western Australia. Upon completion of the sale we will have secured important funding for our future activities without diluting our shareholders’ interests or raising debt. We are now well funded and focused to follow up on our success at the Phoenix South-1 well.”
Carnarvon Petroleum was advised by Miro Advisors and King & Wood Mallesons. Berlanga Thailand Limited was advised by Silverhorn Investment Advisors and K&L Gates.
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