Beach Energy Ltd. has provided an update regarding the sale of its wholly owned subsidiary, Beach Petroleum (Egypt) Pty Ltd. (Beach Egypt), whose core asset is a 22% interest in the Abu Sennan Concession in Egypt, to Rockhopper Exploration plc.
Completion was subject to satisfaction of certain conditions precedent, including waiver or non-exercise of preemptive rights held by existing joint venture parties in relation to the Abu Sennan Concession. Subsequent to the sale announcement, Beach has received notice of the exercise of preemptive rights by one of the existing Abu Sennan Concession joint venture parties. As a result, the conditions precedent for the sale of Beach Egypt cannot be satisfied and the sale of Beach Egypt to Rockhopper will not proceed.
The Abu Sennan Concession preemption period expires Oct. 16. At that time, the ultimate preempting party/parties will be confirmed. Completion of the sale of the interest in the Abu Sennan Concession under the preemption arrangements is subject to Egyptian government approvals. The acquiring party/parties will pay to Beach $20.4 million in cash for the interest in the Abu Sennan Concession (subject to adjustments).