Gulf Oil and Gas accountACCOUNT

Harvest Natural Resources to Sell Interests in Gabon

Source: www.gulfoilandgas.com 12/22/2016, Location: Africa

Share |
Harvest Natural Resource, Inc. (HNR) and its wholly owned subsidiary, HNR Energia B.V., have entered into a Sale and Purchase Agreement with BW Energy Gabon Pte. Ltd, a private Singapore company, to sell all of Harvest's oil and gas interests in Gabon.

Under the terms of the Sale and Purchase Agreement, BW Energy Gabon will acquire HNR Energia's 100% interest in Harvest Dussafu B.V., which owns a 66.667% interest in the Dussafu production sharing contract covering a 210,000 acre area located in offshore Gabon. BW Energy Gabon will pay HNR Energia $32 million in cash for the interest, subject to certain adjustments. BW Offshore Singapore Pte. Ltd, an affiliate of BW Energy Gabon and BW Offshore Limited, a global provider of floating production services to the oil and gas industry, has guaranteed the obligations of BW Energy Gabon under the Sale and Purchase Agreement.

At the closing of the transaction, $2.5 million of the $32 million purchase price will be deposited in escrow, to be held for up to six months to satisfy any post-closing claims the purchaser may have for any breaches of warranties made by Harvest and HNR Energia under the Sale and Purchase Agreement.

Harvest's board of directors unanimously determined that the transaction is in the best interests of Harvest's stockholders and approved the transaction, subject to the approval of Harvest's stockholders. After giving effect to the transaction, Harvest would cease to have a presence in Gabon. In addition to approval by stockholders representing a majority of outstanding shares of Harvest common stock, the closing of the transaction is subject to, among other things, approval of the government of Gabon. Availability of financing is not a condition to closing the transaction.

Net proceeds of the transaction are expected to be approximately $ 29.7 million, without giving effect to any payments to the purchaser under the escrow arrangements and taking into consideration taxes and transaction-related costs.

Harvest previously announced that it is evaluating a possible dissolution. In light of the signing of the Sale and Purchase Agreement to sell Harvest's Gabon assets, Harvest's board has determined that Harvest should move forward with plans for its dissolution, subject to the board's adoption of a formal plan of dissolution and authorization by Harvest's stockholders. Under the dissolution, liquidation and winding up process under Delaware law, the proceeds from the Gabon transaction would be combined with other Harvest assets to be distributed to Harvest's stockholders, subject to certain payments and costs. These costs would include dissolution expenses, taxes and payments related to terminations of employment, as well as funds to establish reserves for the payment of current and possible future liabilities of Harvest.

Tudor, Pickering, Holt & Co. served as financial advisor to the Company. Mayer Brown LLP and Norton Rose Fulbright US LLP acted as legal counsel to the Company.

For more information about related Opportunities and Key Players visit West Africa Projects

Acquisitions and Divestitures News in Gabon >>

Brazil >>  12/18/2017 - Statoil ASA (STO) and Petroleo Brasileiro S.A. - Petrobras (Petrobras) have agreed that Statoil will acquire a 25% interest in Roncador, a large oil f...
Australia >>  12/13/2017 - Cue Energy Resources Ltd (CUE) is pleased to advise that through its 100% owned subsidiary, Cue Exploration Pty Ltd, it has agreed to extend the 42.5...

Israel >>  12/13/2017 - Energean Oil & Gas is pleased to announce that Energean Israel has been awarded five offshore exploration licences within the Israeli Exclusive Econom...
Mozambique >>  12/13/2017 - ExxonMobil announced the completion of a transaction by ExxonMobil Development Africa B.V. to acquire a 25 percent indirect interest in Mozambique’s g...

Russia >>  12/12/2017 - NOVATEK has concluded an agreement to acquire Chernichnoyefrom oil company 'Mangazeya' JSC. The transaction is expected to close in early 2018. ...
Singapore >>  12/11/2017 - Keppel Offshore & Marine (Keppel O&M) has, through its wholly-owned subsidiaries, Keppel FELS Brasil S.A. and Keppel Shipyard Ltd (Keppel Shipyard), s...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Gabon Oil & Gas 1 >>  2 | 3 |

Oil & Gas Projects in Gabon >>

More News

 

Oil & Gas Companies in Gabon >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Privacy Policy.