Triangle completes sales of Pase PSC

By Romel S. Gurky

ASX-listed Triangle Energy (Global) Limited announced on Tuesday that it has completed the sale of its interest in the Pase PSC, Aceh to Enso Asia Inc. (EAI), a nominee of PT Enso Asia.

The key financial terms of the Sale are as follows:

1. Cash consideration of US$4.5 million (less agreed deductions);

2. Production royalty on new developments on the PSC equal to 5 percent of EAI?s profit share (excluding cost recovery) up to a maximum of $2 million per annum and capped at $25 million in aggregate;

3. Up to $7 million in cost recovery payments in respect of existing sunk costs from past expenditure in the Pase PSC A and B fields;

4. Signature Bonus of $1.5 million payable to the Indonesian Government; and

5. A Performance Bond of $1.5 million in favor of the Indonesian Government.

The completion of the sale is significant to Triangle in the current operating environment. The cash proceeds will enable the company to consider new growth opportunities coupled with an asset in the form of potential non-operated cash inflows from cost recovery payments and royalties from the Pase PSC, the firm said.

Prior to the transaction, Triangle has 75 percent of the shares in Aceh Pase Global Energy Pte Ltd (APGE), which wholly owns Pase PSC. The remaining 25 percent is owned by the Acehnese government.

Editing by Johannes Simbolon