Orca Energy Limited (Orca or the Company) reported Friday that it has entered into a binding Sales Agreement (the Transaction) with Senex Energy Limited to sell its Cooper Basin Assets in South Australia for approximately $1.5 million (AUD 2 million) in cash, with an effective date of Jan. 1.
Orca (and its wholly owned subsidiary, Komodo Energy Pty Ltd (Komodo)) will sell to Senex the following permit and associated joint venture interests:
The Transaction is subject to regulatory approvals, with settlement expected to occur on or before May 31.
Throughout the course of the past year, Orca has worked very closely and effectively with Senex Energy in trying to deliver value to shareholders via these assets. Given the assets will require further investment, the monetization of Orca’s Cooper Basin interests is a prudent course of action in the current low oil price environment and will enable Orca to focus its efforts and investment on its Seabiscuit project in Texas, USA as well as pursuing other opportunities.
The disposal of these assets will leave Orca with in excess of $3.8 million (AUD 5 million) in cash (approx. $0.0085 or AUD 0.011 per share) and a board and management team focused on delivering long term and sustainable value for shareholders.
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