Business
Austral Announces PNG Asset Sale and Debt Reduction - CORRECTED
WELLINGTON, New Zealand, April 2, 2008 /CNW/ -- Austral Pacific Energy Ltd. (TSX-V: APX; NZSX: AP...
About this update from Apex Resources Inc.
[{"type":"text","content":"\n\n\n\nWELLINGTON, New Zealand, April 2, 2008 /CNW/ -- Austral Pacific Energy\nLtd. (TSX-V: APX; NZSX: APX; Amex: AEN)\n\n\nAustral Pacific Energy Ltd. announces that it has signed an agreement\nwith a subsidiary of Horizon Oil Limited (ASX: HZN) for the purchase of\nAustral's 28.92% interest in Papua New Guinea petroleum retention license\n(PRL) 4 and 10.7% interest in PRL 5. The offers are subject to the pre-emptive\nrights in the relevant joint venture agreement, which give the existing joint\nventure parties a 45 day period in which to take up an option to purchase a\nproportionate share of Austral's interest on the same terms and conditions as\nthe Horizon agreement.\n\n\nThe Company plans to use the proceeds of sale to accelerate loan\nrepayments under the Company's debt facility with Investec. The amount\noutstanding under the debt facility is US$18.65m. Under the arrangement,\nAustral will, using the proceeds of sale, along with other scheduled\nreductions and the set-off of funds being held in a reserve account, reduce\nthe company debt to US$11 million by May 31, 2008, a reduction of $7.5\nmillion.\n\n\nCommenting on the early repayment and asset sale, Company CEO Mr. Jewell\nsaid, "Now is a good time to reduce the company's debt profile, strengthen the\nbalance sheet, and retain its focus on the growth of production from our core\nassets including the Cheal field development, Kahili Gas Development and\nCardiff appraisal. To facilitate this, Austral has completed a review of its\ninventory of projects and will monetize non-core assets where the divestment\ncan take advantage of the value cycle of the asset and deliver economic value\nto the company." Mr. Jewell also said, "Austral has funding and plans in place\nto drill additional wells in the Cheal field in the second quarter of this\nyear."\n\n\nAdditionally Austral and the holders of $10 million in redeemable\npreferred shares convertible at $1.30 have agreed to swap those shares for an\nunsecured $10 million debenture with the same economic terms as the preferred\nshares. The preferred shares are currently carried within Austral accounts as\nlong-term debt under generally accepted accounting principles.\n\n\nWeb site: http://www.austral-pacific.com\nEmail: [email protected]\nPhone: Thom Jewell, CEO +64 (4) 495 0880 or Brad Holmes: +1 (71...