Triangle Energy Sells Unit Operating Indonesia's Pase PSC to PT Enso Asia
Australia's Triangle Energy (Global) Limited (Triangle or the Company) confirmed Thursday that the shareholders at today's General Meeting voted overwhelmingly for the sale to Indonesia's PT Enso Asia (PTEA) of 100 percent of the shares in Triangle Energy Limited (TEL) and 75 percent of the shares in Aceh Pase Global Energy Pte Ltd. (APGE). TEL owns 100 percent of the shares in Triangle Pase Inc. (TPI), the holder of the Pase Production Sharing Contract (PSC) in Aceh Province, Indonesia.
Votes were received from 67.4 percent of the Company's issued capital, of which 87.9 percent voted in favor of the sale.
The completion of the sale is expected to occur in early January 2016 and is subject to customary conditions to completion as outlined in the Company's Second Addendum to Notice of General Meeting dated Dec. 10 (Second Addendum).
The upfront cash consideration for the sale of $4.5 million will be received upon completion as outlined in the Second Addendum. PTEA has provided funds to the Company as a loan to meet its working capital commitments and the amount of the loan will be deducted from the consideration payable by PTEA upon completion.
Post completion, Triangle will maintain an economic interest in the Pase PSC with up to $7.0 million in cost recovery payments in respect of existing sunk cost from past expentiture in the Pase A and Pase B fields and production royalty on new developments on the PSC equal to 5 percent of PTEA's profit share (excluding cost recovery) up to a maximum of $2.0 million per annum and capped at $25.0 million in aggregate.
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