re: Ann: Exercise by Shell of Pre-Emptive Rig...
ASX/Media Release
SHELL SIGNS LETTER OF INTENT FOR EXERCISE OF TIPTON WEST PRE-EMPTIVE RIGHTS
Shell CSG (Australia) Pty Ltd has signed a letter indicating that it intends to exercise joint venture pre-emptive rights to take up a share of the Tipton West assets recently acquired by Arrow from Beach Petroleum, subject to corporate, third-party and regulatory approvals.
Arrow Energy Limited (Arrow) will also seek necessary third party consents and final Board approvals.
On finalisation, Shell will pay Arrow A$99 million to obtain a further 12% of the Tipton West Joint Venture. In addition to the initial payment of $99 million, Shell will also reimburse Arrow for 30% of any contingent payments (up to $21 million) that Arrow makes to Beach under the terms of the Arrow/Beach Tipton West sale agreement.
Post completion of the transaction, ownership of the Tipton West Joint Venture will be 70% Arrow and 30% Shell.
AOE Price at posting:
$3.54 Sentiment: LT Buy Disclosure: Held
