ROC sells interest in BMG oil production field

Source:Roc Oil Company Limited

Roc Oil Company Limited today announced that it has signed a sale and purchase agreement to sell its entire 50% participating interest in the Basker Manta Gummy (BMG) field to Cooper Energy Limited. Roc Oil Company Limited (ASX: ROC) today announced that it has signed a sale and purchase agreement to sell its entire 50% participating interest in the Basker Manta Gummy (BMG) field to Cooper Energy Limited (ASX: COE).

ROC receives an upfront cash consideration of A$1 million (subject to working capital adjustments) and a A$5 million contingent consideration, subject to first hydrocarbons from a commercial development. The sale of the interest includes the transfer of all remaining ROC BMG liabilities and operatorship to COE, resulting in a reversal of ROC’s full abandonment obligation, with a resulting profit of ~US$32 million (subject to working capital adjustment, before and after tax).

The sale is effective 1 January 2014 and is subject to regulatory approval.

Commenting on the sale, ROC’s Chief Executive Officer Mr Alan Linn said "This sale completes ROC’s exit from the BMG fields and surrounding licences. ROC and the Joint Venture (JV) suspended BMG operations in 2010, because, at that time, a full field development was considered to be non-commercial.

The fields have been in a non-production phase since 2010 during which time the JV has completed a detailed development review designed to understand the most efficient routes to bring BMG gas and liquids to market. With ROC’s strategy progressively increasing our business focus in South East Asia and China we have concluded that a BMG gas development is no longer a core project for the business. As a consequence of the sale, ROC has increased its capacity to develop value growth opportunities within our core operating regions and create value and returns for our shareholders. The sale generated a profit of ~US$32 million and removed a significant potential future abandonment obligation for ROC."

Miro Advisors assisted ROC on this transaction.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs