AWE Limited (ASX: AWE), is pleased to announce thatthe sale of a 50% participating interest in the Northwest Natuna PSC, including the 101 millionbarrel (K-Sand) Ande Ande Lumut oil project, to a subsidiary of Santos Limited (ASX: STO) has been successfully completed.
The Indonesian Ministry of Energy and Mineral Resources and the regulator, SKK Migas, have approved the sale of a 50% participating interest and the transfer of Operatorship to Santos.
Further to the company's ASX release dated 22 August 2013, the 50% interest in the Northwest Natuna PSC was sold to a subsidiary of Santos Limited for total consideration of USD188 million. This comprises USD100 million payable on completionand a USD88 million capital expenditure carry, cost recoverable to AWE. The effective date for the sale is 1 July 2013.
AWE acquired 100% of the Northwest Natuna PSC in February 2012 for USD39 million plus USD100 million in debt. The subsequent sale of a 50% interest for USD188 million is expected to generate an estimated unaudited after tax profit ofapproximately AUD60 million. AWE has received the cash consideration, less tax payable in Indonesia, of USD93 million.
AWE has also received an interim working capital adjustment payment of USD2.9 million. These funds will be used to retire debt, resulting in a net cash position for AWE, a stronger balance sheet and undrawn facilities of AUD300 million.
