Northern Petroleum Sells Waalwijk USG Projects to Star Energy
Northern Petroleum has received £7 million from Star Energy Group Plc. As a result the sale of its entire interests in the Waalwijk underground gas storage ('UGS') projects to Star, a subsidiary of Petronas International Corporation Limited, for a consideration of up to £10 million, has now become unconditional.
Under the agreement further payments of £2 million and £1 million will be made to Northern upon the Final Investment Decisions ('FID') being taken on the UGS projects in the northern and southern parts of the Waalwijk license respectively.
The sale involves Northern selling its entire shareholding in Gas Storage Limited and Overseas Gas Storage Limited to Star. This transaction has also released Northern from the Euro4.5 million contingent consideration due to Wintershall Noordzee B.V. ('WINZ') under the terms of the agreement with WINZ in the event of FID being made before August 2012 on a UGS project within the Waalwijk license area.
The Group's oil and gas interests within the Waalwijk license area remain unaffected by this transaction.
Chris Foss, Finance Director, commented, "Northern is delighted to have completed the sale of these non-core assets for an up front consideration of £7m. This realizes a significant profit for the Group and further strengthens our balance sheet. This strength should not be underestimated given current economic turmoil."
Operates 4 Offshore Rigs
- Sharp Fall In Applications For Norway's Arctic Oil Permits (Dec 05)
- Libya's NOC, Wintershall Strike Interim Deal To Resume Output (Jun 13)
- BASF Sees Role of Oil and Gas Unit Declining Further (May 12)
Company: Northern Petroleum more info
- Northern Petroleum Agrees Cascina Alberto Farm-Out with Shell (Mar 05)
- Northern Petroleum's Latest Alberta Well Proves Uneconomic (Feb 10)
- Northern Drills First Wells in Current Program in Alberta (Sep 17)
Company: Star Energy more info
- Providence, Star Sign Agreement for Dragon License (Nov 12)
- Star Energy Group Fires Up Production at Avington Oil Field (Jan 27)
- EnCore Notes Preliminary Pressure Results at Esmond Reservoir (Nov 04)