AWE Terminates Indonesian HOA
On September 12, 2005, Australian Worldwide Exploration Limited announced the signing of a Heads of Agreement ("HOA") with the owners of PT Ogspiras Basya Pratama ("OBP") for the acquisition of a 90% interest in OBP. The transaction was subject to the completion of final due diligence on OBP and the Indonesian LPG Project.
After a long period of due diligence, AWE has terminated the HOA and will not proceed with the acquisition due to the inability of the owners of OBP providing critical documents regarding the current ownership of the company and uncertainty over some of its historical financial records.
As a result of these issues, AWE has elected to terminate the HOA with immediate effect. AWE has not paid, nor will it pay in the future, any funds to OBP relating to the transaction.
The issues associated with the completion of the due diligence on the transaction are specific to OBP do not alter our view that Indonesia is an attractive destination for future investment by AWE.
Commenting on the termination, AWE's Managing Director Mr. Bruce Phillips said:
"We are very disappointed that the OBP deal could not be consummated. However, AWE is committed to its due diligence processes and corporate governance principles, and these will not be compromised.
"The funds allocated to the OBP investment, raised from the share placement in September 2005, will be utilized for other oil and gas investments in our broader existing portfolio or in new ventures."
- 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)