AWE completes AAL selldown

By Ruli Setiawan

ASX-listed AWE Limited announced Monday that the sale of a 50 percent participating interest in the Northwest Natuna PSC, including the 101 million barrel (K-Sand) Ande Ande Lumut (AAL) oil project, to a subsidiary of ASX-listed Santos Limited has been successfully completed.

The company said that the Indonesian Ministry of Energy and Mineral Resources and upstream authority SKK Migas have approved the sale of a 50 percent participating interest and the transfer of operatorship to Santos.

Further to the company?s ASX release dated 22 August 2013, the 50 percent interest in the Northwest Natuna PSC was sold to a subsidiary of Santos Limited for total consideration of US$188 million.

AWE acquired 100 percent of the Northwest Natuna PSC in February 2012 for US$39 million plus $100 million in debt.

Managing Director of AWE, Bruce Clement, said that the completion of the sale was a major financial and operational success and would set the stage for a new period of growth for the company.

?In addition to the Ande Ande Lumut K-Sand reservoir, we have identified further opportunities in the deeper G-Sand reservoir and a number of exploration prospects within the Northwest Natuna PSC. We look forward to working with Santos to deliver this important and valuable project and progressing these opportunities,? he said said.

Following the sale of the 50 percent interest in the North west Natuna PSC, AWE?s 2P Undeveloped Reserves have reduced by approximately 24.84 million barrels and its 2C Contingent Resources have reduced by approximately 7.4 million barrels. Operatorship of the PSC has now transferred to Santos.

Editing by Reiner Simanjuntak