Thai oil and gas firm PTT Exploration and Production Public Company will acquire a subsidiary of OMV Australia that holds interests in the Timor Sea, in a deal valued at about $US10 million ($A11.6 million).
Thai oil and gas firm PTT Exploration and Production Public Company will acquire a subsidiary of OMV Australia that holds interests in the Timor Sea, in a deal valued at about $US10 million ($A11.6 million).
PTTEP said it had signed a share sale agreement with OMV Timor Sea Pty Ltd, which holds an 18.75 per cent interest in the producing Jabiru and Challis oil fields, a majority interest in three exploration permits and four small undeveloped oil discoveries.
OMV general manager in Australia David Law said he is pleased with the divestment as the Timor Sea area had become a non-core asset within the company's activities.
"The divestment of the Timor Sea portfolio allows OMV Australia to focus on its large Carnarvon Basin acreage holding where we have a number of promising opportunities emerging," he said.
PTTEP said the purchase is in line with its expansion objectives in Australia that allows for cost savings from the synergy of facilities of the existing projects.
Earlier this year, PTTEP completed its acquisition of petroleum group Coogee Resources from Perth businessman Gordon Martin, and changed its name to PTTEP Australasia.
In 2009 financial year report, PTTEP said the Australian subsidiary reported a net loss of Baht 171 million ($5.9 million).
More recently, PTTEP has been in the media spotlight for the oil spill at the Montara well, off the coast of Western Australia.
The OMV announcement is below:
OMV Australia divests Timor Sea portfolio to focus on high potential Carnarvon Basin opportunities
Focus on core areas of offshore Carnarvon Basin where OMV has interests in seven high potential exploration permits covering approximately 39,000km2
Successful divestment of non core assets
OMV Australia has entered into a share sale agreement effective as of July 1, 2009 with PTTEP Australia Browse Pty Ltd for the sale of OMV's interests in the Timor Sea, offshore Australia.
The interests include a non-operated 18.75% interest in the producing Jabiru and Challis oil fields (600 boe/d net) and operated majority interests in three exploration permits and four small undeveloped oil discoveries.
David Law, OMV General Manager in Australia stated: "I am very pleased with this divestment. The Timor Sea area had become a non-core within our Australian activies. The divestment of the Timor Sea portfolio allows OMV Australia to focus on its large Carnarvon Basin acreage holding where we have a number of promising opportunities emerging."
Balanced international E&P portfolio
OMV holds a balanced international E&P portfolio in 17 countries structured around six core regions, namely CEE, North Africa, North-western Europe, the Middle East, Australia/New Zealand and Russia/Caspian region. OMV's current daily production volume is approximately 308,000 boe/d and the Company's proven reserves at the end of 2008 were approximately 1.2 bn boe.
The PTTEP announcement is below:
PTT Exploration and Production Public Company Limited or PTTEP wishes to announce that on September 24, 2009, PTTEP Australia Browse Basin Pty Ltd, a subsidiary of PTTEP, has signed the Share Sale Agreement to purchase 100% shareholders' equity in OMV Timor Sea Pty Ltd, a subsidiary of OMV Australia Pty Ltd engaging in investment and development of oil and gas exploration and production business in Australia.
OMV Timor Sea Pty Ltd has operation in Audacious and Tenacious offshore fields, which are expected to start production within two years, together with five other exploration assets with an upside petroleum probable reserves and resources of oil and natural gas capable for development in the future. OMV Timor Sea Pty Ltd also holds 18.75% participation interest in Jabiru and Challis Fields which are operated by PTTEP. The details of OMV Timor Sea Pty Ltd asset can be found in Enclosure 1.
The purchase price for the 100% equity interest is approximately USD 10 million in cash. The acquisition of OMV Timor Sea Pty Ltd is in line with PTTEP's key strategic objectives of expansion in Australia which allows for cost saving from the synergy of facilities of the existing projects.
The completion of the acquisition is subject to the satisfaction of Conditions Precedent outlined in the Enclosure 2. Transaction's details attached to this letter. According to the Notification of the Capital Market Supervisory Board No. TorChor. 20/2551 Re: Rules on Entering into Material Transactions Deemed as Acquisition or Disposal of Assets of Listed Companies, the transaction size of the acquisition is approximately 0.2% on the total value of considerations approach. The result is well below the 15% threshold, thus Information Memorandum submission to SET is not required.
