Australian-based oil and gas producers Mosaic Oil and Cue Energy have sold their interests in a Papua New Guinea (PNG) joint venture to an unnamed buyer.
The PRL8 permit contains the Kimu gas field and is operated by Oil Search PNG.
Wholly owned subsidiary Mosaic Oil Niugini, which holds 28.57% of PRL8, was sold for $US11m, and Cue subsidiary Omati Oil, with a 10.72% stake, was sold for $US5.14m.
The buyer, a major international, will remain anonymous until the transactions are completed in late July or early August.
Kimu was initially estimated at over 500 billion cubic feet of recoverable gas but was downgraded to an estimate of 270 billion cubic feet after remapping.
Mosaic chief executive Alex Parks said in a statement the “PNG asset... had an uncertain and very long-term commercial outcome”.
He indicated that funds from the sale would be directed towards the company’s activities in Taranaki and Queensland, “opportunities which offer nearer-term potential value”.
The Kimu retention licence is the only asset that ASX-listed Mosaic owns in PNG.
Dual listed Cue Energy will retain PNG interests in the producing South East Gobe and highly prospective Barikewa fields.
Profits from the Maari field in Taranaki helped drive Cue’s net profit to $A8.4m for the March quarter, after re-listing on the NZX in October 2009.
Shares (NZX:CUE) last traded at .32c.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- ‘We’re failing to consider these people are entitled to due process’ – Damien Grant on state’s ‘pernicious’ assets seizures
- Vector CEO Simon Mackenzie on what’s wrong with the transmission price review
- Paul Goldsmith says it’s hard to argue against stronger rules for the insolvency industry
- ASB's Nathan Penny says milk prices will continue to lift, following today's 50c increase to Fonterra's milk price forecast
- Methven's David Banfield talks market share and profitability