Malaysia's Sona Petroleum Berhad reported Monday that its Australian unit Sona E&P (Perth) Pty Ltd. and sellers of the Stag Oilfield in Production License WA-15-L offshore Western Australia have reduced the purchase price for the offshore acreage from $50 million to $25 million.
"Sona E&P (Perth) Pty Ltd (as buyer) and Sona Petroleum (as buyer guarantor) entered into a deed of variation with the Sellers Feb. 29 (Deed of Variation) to inter alia, reduce the Base Purchase Price from $50.0 million (MYR 206.5 million) to $25.0 million (MYR 103.2 million)," the company said in a filing on local stock exchange Bursa Malaysia.
On Feb. 12, Malaysia's Securities Commission had approved the planned acquisition of Stag Oilfied by Sona Petroleum although it pointed out that a Jan. 20 valuation report by independent technical and asset valuation expert Gaffney, Cline and Associates (Consultants) Pte Ltd. (GCA) indicated that the purchase price was "not fair" as it was above the fair market value.
"In line with the reduction in Base Purchase Price, GCA has issued an updated fairness opinion dated Feb. 29, which considers the Base Purchase Price of $25 million to be fair," Sona added in the statement.
Sona inked the purchase agreement for Stag Oilfield in November 2015 with Quadrant Northwest Pty Ltd. and Santos Offshore Pty Ltd. to acquire a full stake in Production Licence WA-15-L, Pipeline Licence WA-6-PL and associated assets. When completed, the company will take over operatorship of the oilfield, which is located in the Dampier sub-basin of the Carnarvon Basin in water depths of approximately 164 feet and approximately 37 miles offshore.
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