Revus Announces Asset Sale
Revus Energy ASA on Wednesday announced the signing of a Sales and Purchase agreement with Bayerngas Norge AS for sale of its 25-percent interest in production license PL090C--including the Fram B gas condensate discovery and 30 percent in the exploration license PL377S nearby. The total purchase price is NOK 370 million after tax, plus a further NOK 50 million conditional upon the Norwegian authorities' approval of the plan for development and operation for Fram B before year end 2007.
"This transaction demonstrates significant value creation for Revus and the large potential in the company's extensive portfolio of development and exploration projects," said Harald Vabø, Revus' CEO.
PL090C was acquired by Revus in June 2005 and has been matured for development during the last year. The current plan is that Fram B will be developed jointly with the nearby discoveries Camilla and Belinda and tied back to the planned platform on the Gjøa field. Commercial terms have been agreed, the development concept has been selected and a PDO submission is planned for late this year with the operator's estimate for production start in Q4 2010.
"This deal is a good example that an asset sale, as opposed to going through a long period of development before getting production income, can be an effective approach to realizing early value and providing cash for further growth projects," said Vabø.
The agreement will be effective from January 1, 2006, and is subject to approval by the Norwegian authorities. Because Bayerngas is not qualified as a licensee on the Norwegian Continental Shelf, the company will have to go through the qualification process in order for the transaction to be approved.
Revus Energy is an independent Norwegian upstream E&P company listed on the Oslo Stock Exchange. The company's business concept is to find opportunities for growth in the mature areas of the Norwegian continental shelf, through a portfolio of fields in production, discoveries and exploration projects. Revus places great emphasis on building a highly qualified organization and forming close relationships to partners. The company has 26 permanent employees and a number of collaboration partners.
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Company: Bayerngas Norge AS more info
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