AWE completes Indonesian transaction
Friday, February 17 2012 - 06:18 AM WIB
Australia-listed oil and gas firm AWE Limited said that it had completed the transaction to acquire a 100% interest and operatorship of two Production Sharing Contracts offshore Indonesia on February 17, 2012.
?AWE is excited by the opportunity that this transaction provides to the Company. The Company believes that the acquisition provides a valuable growth opportunity, through the development of the Ande Ande Lumut oil field and the potential exploration opportunities already identified in both Production Sharing Contracts," said AWE Managing Director Bruce Clement.
Previously, it had reported that its wholly owned subsidiary had executed a Sale and Purchase Agreement (SPA) with a subsidiary of Genting Berhad to acquire a 100 percent interest and operatorship of two Production Sharing Contracts (PSCs) offshore Indonesia for US$39 million.
Under the SPA, the wholly owned subsidiary of AWE will assume the loans and receivables in the two companies which are parties to the PSCs for a net amount of approximately US$100 million, AWE said in a media statement.
The acquisition is a key initiative in AWE?s strategy to grow the company?s business in Australia, New Zealand and Asia through selective exploration and acquisition.
The purchase will be funded from existing cash reserves and from the proceeds of the recently announced sale of part of AWE?s interest in the BassGas Project, which is expected to complete in late February 2012. The company also has an undrawn A$150 million loan facility available to meet any short term funding requirements.
The two PSCs, the North West Natuna block (NWN PSC) and the Anambas PSC are located in the Natuna Sea in 70 meters to 90 metres of water. The NWN PSC contains the undeveloped Ande Ande Lumut (AAL) oil field which is estimated to contain 76 million barrels of recoverable heavy oil. Three exploration and appraisal wells have been drilled in the field.
A Plan of Development (PoD) for the AAL Oil Field was approved by the Indonesian government in late 2011, with first production targeted for end 2014 at an initial plateau production rate of 25,000 barrels of oil per day.
The PoD includes the installation of a well head platform and a leased floating production, storage and offloading vessel (FPSO), together with the drilling of 43 development wells at an estimated total development cost of approximately US$600 million over the period from 2013 to 2015.
Editing by Benget Besalicto Tnb.