AWE Sells 10% Stake in Sugarloaf AMI Project in Texas to CEP II for $190M
Earlier this month, AWE announced that it had achieved FID (Final Investment Decision) for the first stage of development for the significant Waitsia gas project. Production from Waitsia will provide early cash flow from mid-2016 as well as valuable data that will help AWE optimize plans for full field development.
“Post the sale of Sugarloaf, AWE will continue to focus on maintaining a balanced and diverse portfolio with a range of gas assets such as Waitsia, BassGas and Casino weighted to near term production, and other undeveloped assets such as the Ande Ande Lumut oil project weighted towards the medium to long term with potential for future upside in oil prices,” Clement added.
The sale of the Sugarloaf asset will reduce AWE’s production, sales revenue and development expenditure guidance for the 2015-16 financial year. The Company will restate guidance at its half year results Feb. 24.
AWE was advised on this transaction by UBS Investment Bank.
- AUD values calculated using an USD/AUD exchange rate of 70 cents
- AWE has consulted with ASX in respect of the Sugarloaf sale and the ASX has confirmed that Listing Rules 11.1 and 11.2 do not apply in respect the sale. AWE shareholder approval is therefore not required
Participants in the Sugarloaf AMI include (gross working interest basis)
- AWE Limited (via subsidiaries) - 10.0 percent
- Baytex Limited - 28.1 percent
- Empyrean Energy PLC - 3.0 percent
- Marathon Oil (Operator) - 55.0 percent
- Texas Crude Energy - 2.9 percent
- Others - 1.0 percent
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