Soco Completes Sale of Mongolian Assets
SOCO has completed the sale of its wholly owned subsidiaries holding the entirety of its interests in the Tamtsag Basin in Mongolia to Daqing Oilfield Limited Company, a subsidiary of PetroChina. The transaction was approved by SOCO shareholders at an EGM on May 10, 2005.
Following completion of the sale, the Company has received the first tranche of cash consideration of approximately US$ 29.6 million, following the applicable settlement adjustments. As agreed the second tranche of cash consideration of US$10 million has been paid into an escrow account for release to the Company in 18 months contingent upon the conditions as earlier announced. A subsequent payment of up to US$53 million will be tied to future production from the divested interests in excess of 27.8 million barrels.
With the receipt of the first tranche cash consideration, SOCO currently has a net cash balance of approximately US$90 million.
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