Malaysia's Sona Buys Australia's Stag Oilfield for a Reduced Price of $25M
Malaysia's Sona Petroleum Berhad reported Monday that its Australian unit Sona E&P (Perth) Pty Ltd. and sellers of the Stag Oilfield in Production License WA-15-L offshore Western Australia have reduced the purchase price for the offshore acreage from $50 million to $25 million.
"Sona E&P (Perth) Pty Ltd (as buyer) and Sona Petroleum (as buyer guarantor) entered into a deed of variation with the Sellers Feb. 29 (Deed of Variation) to inter alia, reduce the Base Purchase Price from $50.0 million (MYR 206.5 million) to $25.0 million (MYR 103.2 million)," the company said in a filing on local stock exchange Bursa Malaysia.
On Feb. 12, Malaysia's Securities Commission had approved the planned acquisition of Stag Oilfied by Sona Petroleum although it pointed out that a Jan. 20 valuation report by independent technical and asset valuation expert Gaffney, Cline and Associates (Consultants) Pte Ltd. (GCA) indicated that the purchase price was "not fair" as it was above the fair market value.
"In line with the reduction in Base Purchase Price, GCA has issued an updated fairness opinion dated Feb. 29, which considers the Base Purchase Price of $25 million to be fair," Sona added in the statement.
Sona inked the purchase agreement for Stag Oilfield in November 2015 with Quadrant Northwest Pty Ltd. and Santos Offshore Pty Ltd. to acquire a full stake in Production Licence WA-15-L, Pipeline Licence WA-6-PL and associated assets. When completed, the company will take over operatorship of the oilfield, which is located in the Dampier sub-basin of the Carnarvon Basin in water depths of approximately 164 feet and approximately 37 miles offshore.
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.
- Australia's Santos Profit Soars, Flags China LNG Sales Push (Feb 21)
- Santos Seen Luring More Bids After Rejecting $7.2 Billion Offer (Nov 16)
- Australia's Santos Steps Up Effort To Avert LNG Export Curb (Aug 30)
Company: Sona Petroleum Bhd more info
- Santos, Quadrant Terminate Sale of Stag Oilfield Off WA to Malaysia's Sona (Jun 03)
- Shareholders Reject Sona Petroleum's Acquisition of WA's Stag Oilfied (Apr 27)
- Sona Gets More Time to Meet Conditions for Australia's Stag Oilfield Deal (Apr 01)
Company: Quadrant Energy more info
- Australia's Quadrant, Carnarvon Hail 'Incredible' Oil Find in Sector Ripe f (Aug 08)
- Quadrant Flows Gas, Condensate from Roc-2 Offshore Australia (Oct 19)
- Neptune Marine Services Bags Quadrant's Contract for Work Off Australia (Sep 27)