AWE sells 50% of AAL for USD188 million AWE Limited (ASX: AWE) today announced that it has signed a sale and purchase agreement to sell a 50% interest in the Northwest Natuna PSC, which includes the Ande Ande Lumut oil project, to a subsidiary of Santos Limited (ASX: STO) for a total consideration of USD188 million, or approximately AUD209 million at current exchange rates. The consideration comprises USD100 million in cash payable on completion of the sale and a USD88 million cost recoverable capital expenditure carry. As a condition of the sale, AWE will also transfer Operatorship of the PSC to Santos effective on completion. The sale is subject to Indonesian regulatory approval of the transfer of a 50% interest in the PSC and operatorship from AWE to Santos. The sale will substantially strengthen AWE’s financial position and reduce its funding commitments for the project. Following completion, AWE will be in a net cash position with an undrawn AUD300 million debt facility. The sale is expected to generate an estimated unaudited after tax profit of approximately AUD60 million.
AWE will have plenty of cash, maybe we might see NWE get taken over if we prove we are commercial??
NWE Price at posting:
3.1¢ Sentiment: Buy Disclosure: Held
