HPCL's Unit Acquires Stakes in 2 Bass Basin Permits from AWE for $74M
Australia's AWE Limited announced Tuesday that it has agreed to sell an 11.25 percent interest in T/L1 (BassGas infrastructure & Yolla field) and a 9.75 percent interest in T/18P (Trefoil field) in the Bass Basin, Australia to Prize Petroleum Company Limited, a wholly owned subsidiary of Hindustan Petroleum Corporation Limited, for a total cash consideration of $74.48 million (AUD 85 million).
AWE will receive $70.1 million (AUD 80 million) upon completion of the sale with a further $4.38 million (AUD 5 million) deferred payment payable upon meeting the following conditions:
- $2.19 million (AUD 2.5 million) on completion of the BassGas Mid Life Enhancement (MLE) project (drilling of two development wells and installation of gas compression)
- $2.19 million (AUD2.5 million) if the MLE project costs do not exceed an agreed threshold
The sale is subject to standard joint venture and government approvals for a transaction of this nature including the Australian Foreign Investment Review Board and the Reserve Bank of India.
The effective date for the sale is July 1, 2013 and is subject to completion adjustments. At completion, AWE will hold 35 percent in T/L1 (BassGas/Yolla) and 35 percent in T/18P (Trefoil).
Upon completion, the sale is expected to generate an estimated unaudited after tax loss of approximately $8.76 million (AUD 10 million), subject to the completion date and subsequent adjustments.
AWE’s Managing Director, Bruce Clement, said, “The sale of an 11.25 percent interest in BassGas is another successful strategic initiative for the company and is an excellent outcome for AWE.
“Whilst recording a non-cash loss on the sale, the release of capital from the BassGas asset will further strengthen our financial position and reduce AWE’s exposure to capital commitments for the final stages of the MLE project. Our remaining 35 percent interest in BassGas is an appropriate holding in this nonoperated asset and, importantly, maintains our voting rights at a level that provides control over major investment decisions.
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Waitsia Gas Project Exceeds Pre-Production Expectations (Dec 22)
- Waitsia JV Approves 2017 Development Activities Budget (Dec 09)
- AWE Commences Gas Sales from Stage 1 of Waitsia Gas Project in Perth Basin (Aug 29)
Company: Hindustan Petroleum more info
- India Refiner HPCL Sees More Scope For Foreign Buys After ONGC Deal (Jul 20)
- India Approves Creation of State Oil Giant in $4.6 Billion Deal (Jul 19)
- Iraq Undercuts Saudi Arabia In Q2 To Grab Top Spot In India Oil Market (Jul 19)