Australia's Beach Energy Limited referred Monday to its Aug. 10 agreement with Rockhopper Exploration plc in relation to the sale of its wholly owned subsidiary, Beach Petroleum (Egypt) Pty Ltd. (Beach Egypt), whose core asset is a 22 percent interest in the Abu Sennan Concession in Egypt.
Completion was subject to satisfaction of certain conditions precedent, including waiver or non-exercise of pre-emptive rights held by existing joint venture parties in relation to the Abu Sennan Concession. Subsequent to announcement, Beach has received notice of the exercise of pre-emptive rights by one of the existing Abu Sennan Concession joint venture parties. As a result, the conditions precedent for the sale of Beach Egypt cannot be satisfied and the sale of Beach Egypt to Rockhopper will not proceed.
The Abu Sennan Concession pre‐emption period expires Oct. 16. At that time the ultimate pre-empting party / parties will be confirmed. Completion of the sale of the interest in the Abu Sennan Concession under the pre‐emption arrangements is subject to Egyptian government approvals. The acquiring party / parties will pay to Beach $20.4 million in cash for the interest in the Abu Sennan Concession (subject to adjustments).
A further transaction update will be provided in due course.
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