Cooper Energy Ltd (ASX:COE), an Australian Securities Exchange-listed exploration and production company, has announced its signing of agreement for the sale of its Indonesian exploration assets to Mandala Energy Limited, a Southeast Asia-focused oil and gas exploration and production company for US$8.25 million.
In a disclosure to the ASX, Cooper Energy said the sale, which is effective from 1 January 2016, is subject to approval of the Government of Indonesia and is expected to complete within the current financial year.
The net cash proceeds are anticipated to be more than AU$10 million at current exchange rates, after costs and Indonesian transfer taxes.
Mandala To Acquire 100% of Cooper Energy’s Sumbagsel and Merangin PSCs
Under the transaction signed in Jakarta today, Mandala will acquire 100% of the Sumbagsel and Merangin III PSCs located in the South Sumatra basin. Cooper Energy will continue the divestment process for its 55% interest in the Tangai-Sukananti KSO production license.
The sale is the first outcome of a process initiated by Cooper Energy in the December quarter to divest its Indonesian portfolio.
“Today’s transaction marks another important step in our strategy to concentrate Cooper Energy’s resources and efforts on the eastern Australian energy market,” said the company’s managing director, David Maxwell.
Maxwell said the decision to divest the Indonesian assets was driven by the maturation of the company’s eastern Australian gas strategy.
The benefits from the transaction include the anticipated proceeds and the removal of existing license commitments for seismic acquisition and the drilling of two wells.
Cooper Energy recently reported cash and investments of AU$30.2 million on 31 December 2015.
“The acquisition of these two large PSCs marks a very important strategic milestone for Mandala Energy. From a portfolio perspective, it significantly increases our footprint in the prolific South Sumatra Basin and provides us with operatorship of two high quality exploration assets,” said Mandala Energy CEO Barry O’Donnell. – BusinessNewsAsia.com