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Cooper Energy announces Sale of Indonesian Production Assets

Source: 6/7/2016, Location: Asia

Cooper Energy (COE) announces it has signed an agreement with ACL International Ltd. (ACL), a Canadian oil and gas company (through its wholly owned subsidiary Bow Energy International Holdings Inc.) and Lamara Energy Pte, a Singapore based oil and gas company, for the sale of its 55% interest in the Tangai-Sukananti KSO, South Sumatra Basin, Indonesia.

Under the terms of the agreement, Cooper Energy will receive total consideration of US$4.3 million (A$5.9 million) inclusive of working capital. The sale agreement is subject to regulatory and joint venture approvals.

A deposit of US$0.26 million has been paid and Cooper Energy will receive a further US$3.4 million on completion at 29 July 2016, with the balance to be received through deferred payments and as receivables fall due. Consistent with the advice of the company's Cleansing Notice of 18 May the agreed sale of the Indonesian production assets will result in an immaterial loss (approximately A$2 million against the book value at 31 December 2015).

The transaction will complete the company's withdrawal from Indonesia, announced earlier this year as part of its strategy to concentrate on Australia and in particular on the Gippsland Basin gas projects. The sale of the company's Indonesian exploration assets was completed on 1 June for total proceeds of US$9.07 million.

Announcing the sale David Maxwell, Managing Director, Cooper Energy recognised the results achieved by the Indonesian team.

'The efforts and technical judgement of our team in Indonesia delivered a 260% increase in proved and probable oil reserves in the KSO in our most recent reserves report. Production has been increased around 13 times from approximately 60 barrels of oil per day prior to being shut in under previous ownership to the current rate of approximately 800 barrels per day, with substantial upside from the development plans the team has prepared.

'These are commendable results and I record our appreciation of the contribution made by the team in Indonesia. It is now appropriate, given the opportunities available to Cooper Energy in Australia that the next phase of the Indonesian asset development be taken up by a new owner' he said.

ACL Director, Aqeel Virk, said that 'Acquiring the KSO adds to our existing Indonesian assets and is complementary to our experience. Moreover, the synergy with Lamara further strengthens our operations in Indonesia'.

Lamara Energy's three Founding Directors, Will Rathvon, Bret Mattes and Rob Lemmey believe that: 'The Cooper Energy team in Indonesia has operated the Sukananti KSO efficiently and effectively, and the company is now departing the country with an excellent reputation. Cooper Energy's accomplishments with the KSO are well recognised and they have developed a positive relationship with the license holder, Pertamina. The existing business is in good standing in today's oil price environment, and represents a solid base for growth'.

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

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