Anzon Australia Pty Limited ("AZA"), a wholly owned subsidiary of ROC, has executed an agreement for the sale of a 10% participating interest in Production Licenses VIC/L26, VIC/L27 and VIC/L28, offshore Victoria, which include the BMG project, to PT Pertamina Hulu Energi, a subsidiary of the Indonesian National Oil Company ("Pertamina").
Total cash consideration for the sale is US $31.5 million, including working capital. Through AZA, ROC will retain a 30% participating interest in and remain operator of the BMG project.
The sale is subject to satisfaction of conditions precedent including Australian Government regulatory approvals, approval from the Treasurer of the Commonwealth of Australia under the Foreign Acquisitions and Takeovers Act 1975 (Cth) and pre-emptive rights of the other joint venture participants. The effective date of the sale is April 1, 2009 and completion is expected in the third quarter of 2009. On completion of the sale, BMG joint venture participant interests will be:
Commenting on the transaction, ROC's Chief Executive Officer, Bruce Clement, stated, "The sale of a 10% interest in the BMG project is a positive initiative for ROC and is consistent with the Company's strategy to balance its asset portfolio and manage financial resources and risk. The additional funds raised by the sale will strengthen the Company's balance sheet by reducing net debt, as well as reducing future development commitments for the BMG project.
"Pertamina's participation in BMG is a positive endorsement for the project and ROC's operatorship, particularly in relation to the rephased development plan now being implemented."
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