Stratic Sells Italian Business, Longanesi Gas Field Interest to Enel
Stratic has announced the sale of its Italian business to Enel Trade SpA, a subsidiary of one of Italy's largest companies.
The sale to Enel involves Stratic's entire portfolio of assets in Italy, including its interest in the Longanesi gas field and other exploration acreage in the country, for a total cash consideration of €34.3 million ($50.9 million) and the assumption of existing obligations relating to the assets. Stratic is entitled to receive a further payment of €6.6 million ($9.8 million) provided the commencement of first production takes place before the end of 2011, reducing pro-rata by month, with no payment due if production commences after the end of 2012. The transaction is subject to usual industry conditions, including regulatory approval, and is expected to complete in the first quarter of 2010.
Kevin Watts, Stratic's President and Chief Executive Officer, commented, "We are delighted to announce the successful sale of our Italian business. This is the next step in our disposal program and business restructuring which we commenced at the start of the year, and which saw the completion of the sale of our interests in the Breagh licenses in August. When the Italian business sale completes, our disposals will have generated gross cash receipts totalling over $110 million. The Italian business sale proceeds will enable us to reduce net debt further, strengthen the balance sheet and provide resources for future investment."
- EnQuest Commences Drilling at West Don Field (Aug 09)
- EnQuest Increases Reserves in North Sea with Stratic Acquisition (Aug 03)
- Stratic Highlights 1Q10 Financial, Operational Results (May 28)
Company: Enel S.p.A. more info
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