Triangle receives new ?superior proposal? for Pase PSC

By Ruli Setiawan

ASX-listed Triangle Energy (Global) Limited (TEG) said that it has accepted a new superior proposal from PT Enso Asia (PTEA) of up to US$39.9 million (approximately A$55.5 million) in relation to the company?s interest in the Pase PSC, Aceh.

TEG said in a statement on Tuesday that PTEA made the original offer for the company?s interest in the Pase PSC as announced to ASX on July 31, 2015. The original PTEA agreement remains in effect and will be varied to reflect the terms of the PTEA superior proposal.

?The directors of Triangle have concluded that the PTEA superior proposal is superior to the proposal from the consortium to acquire the company?s interest in the Pase PSC as announced to ASX on November 9, 2015,? TEG said.

A consortium comprising One North Energy Private Limited, Lamara Energy Pte Ltd and Boustead Singapore Limited earlier made an offer of up to US$32.4 million for the TEG interest in the Pase PSC.

The key financial terms of the PTEA Superior Proposal are as follows:
- cash consideration of US$4.5 million, of which US$862,000 has already been transferred and the balance is payable at completion (which will occur upon shareholder approval of the sale);
- production royalty on new developments on the PSC equal to 5% of PTEA?s profit share (excluding cost recovery) up to a maximum of US$2 million per annum and capped at US$25 million in aggregate;
- up to US$7 million in cost recovery payments in respect of existing sunk cost from past expenditure in the Pase PSC A and B fields;
- the Signature Bonus of US$1.5 million payable to the Indonesian Government; and
- a Performance Bond of US$1.5 million in favour of the Indonesian Government which has already been provided by PTEA on 29 July 2015.

PTEA has also agreed to waive the two conditions precedent in the agreement relating to Government of Indonesia and Government of Aceh approvals, the TEG statement said.

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

Editing by Reiner Simanjuntak