Business
Completes Sale of Sugarloaf AMI for US$71.5M
Completes Sale of Sugarloaf AMI for US$71.5M.
About this update from Empyrean Energy Plc
[{"type":"text","content":"\n \nRNS Number : 6989P Empyrean Energy PLC 22 February 2016 \n\nEmpyrean Energy Plc / Index: AIM / Epic: EME / Sector: Oil & Gas\n22 February 2016\nEmpyrean Energy PLC (\"Empyrean\" or the \"Company\")\n \nEMPYREAN SUCCESSFULLY COMPLETES THE SALE OF THE SUGARLAOF AMI PROJECT FOR UP TO US$71.5 MILLION\n \nEmpyrean Energy PLC, the profitable US onshore oil, gas and condensate exploration, development and production company with assets in Texas and California, is pleased to announce that it reached financial close (\"Closing\") on 19 February 2016, Houston time, of the purchase and sale agreement (the \"PSA Agreement\") with Carrier Energy Partners II, LLC (\"CEP II\"), a Delaware corporation, to dispose of all of its right, title and interest in the Sugarloaf AMI development (the \"Sugarloaf AMI Project\" or the \"Asset\") for a purchase price of US$61,500,000 (the \"Purchase Price\") (the \"Transaction\"). The Company may also receive, in certain circumstances as further set out below, contingent payments up to a maximum of US$10,000,000. \n \nEmpyrean had a 3% working interest in the Sugarloaf AMI Project, which is operated by Marathon Oil Company, a subsidiary of US major Marathon Oil Corporation (NYSE: MRO) (\"Marathon\" or the \"Operator\"). CEP II is a Houston, Texas based private oil and gas company focused on the acquisition and exploitation of upstream assets. Backed with an equity commitment from Riverstone Holdings LLC, its primary objective is to partner with select operators that are developing both unconventional and conventional reservoirs in North America.\n \nThe Transaction has an effective date of 1 October 2015 (the \"Effective Date\") and all of the conditions to close have now been met. Following the conclusion of the Transaction, the Company's portfolio comprises a 58.084% working interest (\"WI\") in the Eagle Oil Pool Development Project, located in the San Joaquin Basin in southern California; a 7.5% WI in two producing wells and lesser interests in another six producing wells located in the Sugarloaf Block A operated by ConocoPhillips; and a 10% WI in the Riverbend Project, located in the Tyler and Jasper counties, onshore Texas.\n \nAt closing, the Purchase Price was adjusted, under the terms of the PSA Agreement, to reach a settlement that refl...