After a long period of due diligence, AWE has terminated the HOA and will not proceed with the acquisition due to the inability of the owners of OBP providing critical documents regarding the current ownership of the company and uncertainty over some of its historical financial records.
As a result of these issues, AWE has elected to terminate the HOA with immediate effect. AWE has not paid, nor will it pay in the future, any funds to OBP relating to the transaction.
The issues associated with the completion of the due diligence on the transaction are specific to OBP do not alter our view that Indonesia is an attractive destination for future investment by AWE.
Commenting on the termination, AWE's Managing Director Mr. Bruce Phillips said:
"The funds allocated to the OBP investment, raised from the share placement in September 2005, will be utilized for other oil and gas investments in our broader existing portfolio or in new ventures."
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