AWE Ltd. has completed the sale of an 11.25% interest in T/L1 (BassGas infrastructure and Yolla field) and a 9.75% interest in T/18P (Trefoil field) in the Bass Basin of Australia to Prize Petroleum Co. Ltd., a wholly owned subsidiary of Hindustan Petroleum Corp. Ltd. (HPCL).
Total consideration for the sale was $74.3 million (AUD 85 million). The effective date for the sale is July 1, 2013, and it is subject to completion adjustments relating to the net income received and capital invested since this date. The completion adjustment will be finalized prior to the end of the calendar year.
Proceeds of the completion funds of $55.9 million (AUD 64 million) will be used to repay drawn debt and to fund development projects. All joint venture and government approvals for this transaction have been received, and AWE now holds 35% in T/L1 (BassGas/Yolla) and 35% in T/18P (Trefoil).
Participants in the BassGas project are AWE Ltd. (via subsidiaries), 35%; Origin Energy (via subsidiaries) (operator), 42.5%; Toyota Tsusho Gas E&P Trefoil Pty Ltd., 11.25%; and Prize Petroleum Co. Ltd., 11.25%.