Triangle sells Pase PSC interest to Enso Asia
Friday, July 31 2015 - 02:46 PM WIB
ASX-listed Triangle Energy (Global) Limited announced on Friday the execution of a Sale and Purchase Agreement (SPA) with Indonesian based company PT Enso Asia (PTEA) for the sale of its 100% interest in the Pase PSC for a cash consideration of US$2.5 million, plus cost recovery up to a maximum of $5.0 million.
Triangle will receive a proportion of future recovery of past sunk costs in respect to Pase A and B fields future production as it occurs.
The payment of $2.5 million to Triangle from PTEA is structured as follows:
? $150,000 was paid as an advance upon signing the Term Sheet on June 23, 2015;
? $650,000 for Triangle?s working capital until completion of the transaction;
? $700,000 upon shareholder approval or upon ASX confirmation that shareholder approval is not required; and,
? $1.0 million upon Indonesian Government approval and finalization of all conditions precedent contained within the SPA.
In addition, PTEA will provide the $1.5 million performance bond required under the PSC and also the $1.5 million signature bonus payable to SKK Migas.
In the event that the transaction is terminated, Triangle will be required to pay:
? a $5.0 million break-up fee;
? all amounts paid by PTEA to Triangle as consideration;
? The $1.5 million performance bond and the $1.5 million signature bonus; and
? all reasonable and verifiable legal costs incurred to the date of the transaction.
The company will not be liable for the $5.0 million break-up fee in the event that the receipt and obtainment of Indonesian Government Approval for the change of control of the PSC is not forthcoming.
On May 22, 2015, the 20 year extension of the Pase PSC was executed at a formal signing ceremony held at the Indonesian Petroleum Association?s annual conference.
The board of Triangle investigated several opportunities to enable the company to continue to operate and develop the Pase PSC, however it determined that it was in the company?s best interests to proceed with the sale of the asset to PTEA. The company will provide updates to the ASX as they develop.
Following the completion of this transaction, Triangle will be in a stronger position to secure suitable producing oil and gas assets for its future growth.
Triangle 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 Johannes Simbolon