Pan Orient Energy Corp. has entered an agreement to sell its 50% equity interest in subsidiary Pan Orient Energy (Siam) Ltd. to a wholly owned subsidiary of Sea Oil Public Co. Ltd. of Bangkok, Thailand, for $42.5 million, including a working capital adjustment of $2.4 million, a news release said.
Pan Orient Energy (Siam) Ltd. holds Pan Orient's 100% interest in Concession L53/48 in Thailand and will remain as the operator.
The transaction is anticipated to close on or about Jan. 12, 2015. The sale and purchase agreement contains customary representations, warranties, covenants and indemnities in favor of Sea Oil. Closing is subject to Sea Oil shareholder approval at a meeting scheduled for Dec. 17, 2014, financing, certain regulatory and other third party approvals and waivers, as well as other customary closing conditions, the release said. A $4 million break fee is payable by Sea Oil if shareholder approval or financing is not obtained. It is anticipated that net proceeds to Pan Orient, after closing adjustments, a 3% finder's fee, tax and other costs, will be approximately $40.9 million.
A two appraisal well and one exploration well drilling program in Concession L53/48 is expected to commence shortly after closing in January 2015, according to the release.
“In addition to the sale of a 50% interest in the Thailand L53/48 asset announced today, the company has also entered into exclusive negotiations and made significant progress towards the signing of farm-out agreements for the East Jabung production-sharing contract (PSC) and Batu Gajah PSC in Indonesia and hopes to finalize these negotiations in November,” Pan Orient President and CEO Jeff Chisholm said in the release. “The company has also been actively engaged with a third party working towards concluding a farm-in agreement on the Citarum PSC in Indonesia.”
Recommended Reading
Which Haynesville E&Ps Might Bid for Tellurian’s Upstream Assets?
2024-02-12 - As Haynesville E&Ps look to add scale and get ahead of growing LNG export capacity, Tellurian’s Louisiana assets are expected to fetch strong competition, according to Energy Advisors Group.
‘Unexpected’ JV to Move Permian NatGas to Gulf Coast LNG Terminals
2024-03-26 - A trio of midstream companies—Enbridge, Whitewater and MPLX—will work together to build infrastructure to transport Permian Basin natural gas to Gulf Coast LNG terminals.
EQT Sees Clear Path to $5B in Potential Divestments
2024-04-24 - EQT Corp. executives said that an April deal with Equinor has been a catalyst for talks with potential buyers as the company looks to shed debt for its Equitrans Midstream acquisition.
ONEOK CEO: ‘Huge Competitive Advantage’ to Upping Permian NGL Capacity
2024-03-27 - ONEOK is getting deeper into refined products and adding new crude pipelines through an $18.8 billion acquisition of Magellan Midstream. But the Tulsa company aims to capitalize on NGL output growth with expansion projects in the Permian and Rockies.
EIG’s MidOcean Energy Acquires 20% interest in Peru LNG
2024-02-08 - On top of acquiring a 20% interest in Peru LNG, MidOcean Energy is also in the process of acquiring interests in four Australian LNG projects.