Molopo Energy announce that it has entered into an agreement for the sale of its Queensland Bowen Basin coal bed methane assets to a wholly-owned subsidiary of PetroChina International Investment Company for A$41 million plus a A$2.4 million adjustment for working capital. The transaction is subject to review by the Australian Foreign Investment Review Board (FIRB) and the purchaser obtaining approval from the Chinese National Development Reform Commission (NDRC) which must be obtained within sixty days unless otherwise extended. Settlement of the transaction is expected to occur thirty days after the later of the FIRB and NDRC conditions being satisfied.
CEO Tim Granger commented, 'We're pleased to have reached agreement for this sale, which is an important step in our previously stated strategy of focussing on our unconventional North American oil assets. The sale proceeds, combined with our existing strong cash position, will be used to fund our 2013 capital program as we enter a period of intensive development of our Texas Wolfcamp oil acreage. We have conducted a very thorough sales process for these coal bed methane assets and are confident that this transaction is the optimal outcome for shareholders.'
As the anticipated sale proceeds are less than carrying value of the Queensland asset and the disposal costs, Molopo expects to recognise a before tax impairment to its June 30, 2012 accounts of approx. $24 million. No cash tax is anticipated as this transaction will be offset against accumulated tax losses.
Recommended Reading
CNOOC Brings Online Phase 2 of Natgas Project in South China Sea
2024-09-27 - CNOOC’s Shenhai-1Natural Gas Development Project is expected to reach peak production in 2025.
US Drillers Cut Oil, Gas Rigs for Second Week in a Row
2024-09-27 - The oil and gas rig count fell by 1 to 587 in the week to Sept. 27, the lowest since early September.
Chevron Gets Approval for Farm-in Offshore Uruguay
2024-09-26 - Chevron Corp. received approval for farm-in at the AREA OFF-1 block offshore Uruguay and along with partner CEG Uruguay SA eyes the acquisition of 3D seismic over the remainder of 2024.
Hurricane Helene Shuts in Nearly 30% of GoM Crude Production
2024-09-25 - Bumped up to hurricane classification on Sept. 25, Hurricane Helene has shut in 29% of crude and 17% of natural gas production in the Gulf of Mexico as it nears landfall in Florida tomorrow.
Baseline Energy Opens New Uinta Basin Power Generator Facility
2024-09-24 - Baseline Energy Services’ facility in the Uinta Basin plans to support the region’s mobile power generator fleet with a range of maintenance and repair services.