Medco sells US asset for $45.5 million

Cayman Islands-based oil and gas firm Lodore Resources Inc said Tuesday that Medco Energi had sold its 30 percent working interest in the Stratton field onshore South Texas to Apache Corporation, the operator of the oil field, for US$45.5 million.

Lodore is contractually entitled to receive 35 percent of the consideration, net of any costs, received by Medco above a pre-determined benchmark price which is US$120 million for the entire portfolio in the United States acquired from Australia?s Novus Petroleum last year.

However, Apache's purchase of the 30 percent working interest in the Stratton field was made under a preferential purchase right and as such the sale was not part of the auction process that was initiated by Medco for the remainder of the US assets, Lodore said in a statement to London Stock Exchange.

Lodore added that it had formally commenced negotiations to acquire the remainder of the US assets, comprising the producing properties in Louisiana as well as the high impact exploration acreage on Padre Island. (Robert)