AJ Lucas and Molopo sell 100% in PEL 285 for $370 million
AJ Lucas Group Limited (ASX: AJL) (“AJ Lucas” or “the Company”) today announced that it has
entered into an unconditional, definitive agreement with AGL Energy Limited (“AGL”) for the sale of
its 70% interest in PEL 285, the Gloucester Basin gas project in New South Wales. Under the terms
of the sale agreement AJL will receive approximately $259 million in cash.
The aggregate value of the transaction on a 100% basis is $370 million, and the sale process has
been conducted jointly with Molopo Australia Limited, which holds a 30% interest in PEL 285.
Commenting on the announcement, Executive Chairman of AJ Lucas, Mr Allan Campbell, said: “This
is a very pleasing result for AJ Lucas. The cash proceeds from the sale will provide the Company
with significant financial flexibility to continue to grow its drilling and pipelines business and
develop its coal seam gas, unconventional gas and water asset base. We are delighted with the
outcome of the sale process, which recognises the high asset quality and strategic value of the
Gloucester Basin to the New South Wales gas market.”
Mr Campbell added: “AJ Lucas, as the operator of the Gloucester Basin, has provided the expertise
to explore and develop the Gloucester Basin, delivering initial reserves certification in February
2008. The asset has now been developed to a mature project which is expected to deliver a
significant gas supply into the NSW market. This is an opportune time to divest this business and
allow it to be developed through to production by a major integrated energy company active in the
New South Wales gas market.
“We are delighted that AGL will be the new owner of this highly strategic asset. AGL is without peer
in the sale and distribution of domestic gas and AJ Lucas and AGL have a strong long-standing
relation over many decades.”
AJ Lucas remains confident that the growth in the CSG sector will continue and has retained key
management expertise to assist it in managing its ongoing investments in the sector.
Approximately 20% of the proceeds from the sale will be applied to retirement of existing debt,
with the balance retained in the business, as indicated above.
Completion of the transaction is expected to occur before the end of 2008.
AJ Lucas has been advised by Goldman Sachs JBWere in relation to the sale.
For further information, please contact:
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