Beach Petroleum Limited (ASX:BPT) Completes The Sale Of Its Entire Arrow Shareholding For A$77.8 Million
Adelaide, July 27, 2009 AEST (ABN Newswire) - The directors of Beach Petroleum Limited (ASX:BPT)(PINK:BEPTF) are pleased to announce that the Company has completed the sale of its entire holding of its shares in Arrow Energy Limited (Arrow).
As part of the consideration for selling the Company's interest in the Tipton West project, Beach was issued $70 million in Arrow shares. The number of shares was based on a the 30 day volume weighted average price of Arrow's shares of $3.3958 and resulted in 20,613,699 shares being issued.
Beach has sold these shares at an average price of $3.7757 per share, thereby generating gross proceeds of $77.8 million, resulting in nearly $8 million in additional gross profit on the transaction.
As part of the Tipton West transaction, Beach had previously received $260 million cash from Arrow, and can obtain future benefit through the following contingent payments:
- Up to A$40 million cash for the booking of additional gross 3P reserves (at the rate of A$0.06/GJ) relative to the Tipton West Joint Venture's 31 December 2008 reserves position, up to and including the 31 December 2014 reserves certification;
- A$15 million cash upon gas owned by Arrow supplying any liquefied natural gas ("LNG") project no later than 31 December 2016; and
- A$15 million cash upon any LNG project producing an annualized equivalent of 1 million tonnes per annum (mtpa) of LNG using gas supplied from Arrow's upstream tenements no later than 31 December 2017.
Contact
Reg Nelson
Beach Petroleum
Tel: +61-8-8338-2833
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