Business
Austral Pacific Sells Second PNG Asset
WELLINGTON, New Zealand, May 26 /CNW/ -- In keeping with its strategy to monetize non core assets...
About this update from Apex Resources Inc.
[{"type":"text","content":"\n\n\n\nWELLINGTON, New Zealand, May 26 /CNW/ -- In keeping with its strategy to\nmonetize non core assets and focus on its New Zealand projects, Austral\nPacific Energy Ltd. (TSX-V: APX; NZSX: APX; Amex: AEN) (Austral) is pleased to\nannounce the sale of its interests in Petroleum Prospecting Licenses (PPLs)\n235 and 261 in Papua New Guinea.\n\n\nAn agreement has been reached to sell APX's interest in the licenses to\nForeland Oil Limited a subsidiary company of Rift Oil Limited (Rift) for $US 5\nMillion. Included in the agreement is Austral's 35% interest in the Coral Sea\ndrilling rig and a dismissal of any and all claims or litigation between the\ncompanies.\n\n\nThe asset sale completes Austral's phased exit from PNG and affords a\nvaluable cash injection which will be used to further reduce the company debt\nprofile and support drilling activities at Cheal, Kahili and Cardiff.\n\n\nCommenting on the agreement, Austral CEO and President Thom Jewell said,\n"The commercialization of gas resources is a major challenge in the PNG\nforeland basin. The company made a strategic decision to monetize its gas\nresources in the ground rather than pursue a significant capital spending\nprogram targeting a long term gas market. To accomplish this goal, Austral has\nbeen in negotiations with a number of companies and is pleased to be able to\ncomplete this transaction with Rift."\n\n\nThe decision to exit from PNG will allow Austral to continue to focus on\nits goals in New Zealand to increase production, more fully utilize the world\nclass Cheal production station to reduce lifting costs. The company intends to\nbuild shareholder value through expanding the development of the Cheal field\nand pursuing upside potential of the Greater Cheal trend, Kahili and Cardiff.\n\n\nWeb site: www.austral-pacific.com\nEmail: [email protected]\nPhone: Thom Jewell, CEO +64 (4) 495 0880\n\n\nNone of the Exchanges upon which Austral Pacific's securities trade have\napproved or disapproved the contents hereof. This release includes certain\nstatements that may be deemed to be "forward-looking statements" within the\nmeaning of applicable legislation. Other than statements of historical fact,\nall statements in this release addressing future production, reserve\npotential, exploration and development activities and other contingenc...