Asset sales allow for portfolio diversification

ASX-listed oil and gas explorer Australian Worldwide Exploration (AWE) has confirmed the sale of interests within its Bass Basin project to Toyota Tsusho Gas E and P. According to a March media release, Toyota Tsusho purchased an 11.25 per cent interest in the BassGass T/L 1 tenement (including the Yolla gas and condensate field and production infrastructure) and a 2.75 per cent interest in exploration permit T/18P (including the Trefoil gas and condensate discovery) for a cash consideration of $80.125 million. This amount included capital adjustments at completion, which would be finalised in June.
“The resulting sale price agreed with Toyota Tsusho refl ects the strength and quality of the Bass Basin portfolio and highlights the signifi cant value of AWE’s core business,” AWE managing director Bruce Clement said in the release. Following the sale, the interest in the BassGas T/L1 project is divided accordingly: AWE holds 46.25 per cent; Origin Energy (operator) holds 42.50 per cent; and Toyota Tsusho holds 11.25 per cent. In the T/18P exploration field AWE now holds 44.75 per cent; Origin Energy (operator) holds 39 per cent; Toyota Tsusho holds 11.25 per cent; and Acer Energy holds 5 per cent.
The transaction will provide AWE with a more balanced asset portfolio and the flexibility to fund future growth projects, while reducing the company’s risk-exposure to the capital expenditure requirements for the BassGass Mid-Life Enhancement project, an estimated saving of about $40 million.
“The BassGass sale proceeds are ear marked for investment in future growth projects in the event of success in the company’s exciting tight gas and shale gas opportunities in WA; and its conventional gas targets in Indonesia; and in potential selective acquisitions,” Mr Clement said.


By Zana Kaic

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