Australian energy company AWE has completed the divestiture of its 57.5% interest in the Tui Area Oil Fields located in the offshore Taranaki basin in New Zealand, to Kuala Lumpur-based Tamarind Management for US$1.5 million before tax.
Tamarind has acquired all of the outstanding shares of AWE New Zealand and AWE Taranaki which together own 57.5% of Tui. The sale includes operatorship, assets and inventory, and a working capital cash balance of $10.8 million.
AWE estimates a completion payment to Tamarind of $2.2 million for purchase price adjustments. These adjustments include the close out of unutilized Brent oil price hedges.
The sale of Tui is estimated to generate a non-cash profit after tax of $27 million, after purchase price adjustments, and has reduced AWE’s provisions for future abandonment liabilities by $67 million.
AWE CEO David Biggs said, “Completion of the Tui sale further strengthens AWE’s balance sheet and moves us closer towards our goal of transitioning from legacy production assets to new growth assets.
“Being a late life asset, the sale of Tui will have minimal impact on our 2P reserves and 2C contingent resources. However, our future abandonment liabilities have reduced significantly by $67 million. AWE is now focused on developing Stage 2 of the Waitsia gas project and we are looking to acquire additional production assets.”
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