Australia's Beach Energy Limited updated Monday on the revised agreement with Rockhopper Exploration plc in relation to the sale of Beach’s wholly owned subsidiary, Beach Petroleum (Egypt) Pty Ltd. (Beach Egypt). The sale of Beach Egypt, whose core asset is a 22 percent interest in the Abu Sennan Concession in Egypt, was originally announced on Aug. 10, 2015.
Sale consideration previously comprised of cash and the issue of shares in Rockhopper. The amended transaction terms now provide all cash consideration of up to $20.5 million (subject to adjustments). A payment of approximately $11.9 million will be received at completion, with payment and timing of the deferred component of approximately $8.6 million expected to occur over the next 12 months subject to receipt of outstanding receivables.
Completion of the transaction is dependent on satisfaction of remaining conditions precedent.
Conditions relating to confirmatory due diligence and joint venture pre‐emptive rights and consents have now been satisfied. Transaction completion by the end of FY16 is targeted.
Rockhopper is a UK based oil and gas exploration company with a market capitalization of approximately $180 million and a strong balance sheet. Rockhopper holds interests in the Falkland Islands and is expanding its presence in the greater Mediterranean and North African area.
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