Business
Sale of Sub, Bd Change, Share Consolidation & GM
Sale of Sub, Bd Change, Share Consolidation & GM.
About this update from Sound Energy Plc
[{"type":"text","content":"\n \nRNS Number : 3040T Sound Oil PLC 12 December 2012 \n \n\n12 December 2012\n \nSound Oil plc\n(\"Sound Oil\" or \"the Company\")\n \nSale of Indonesian Subsidiary, Board Change, Share Consolidation\nand Notice of General Meeting\n \nSale of Bangkanai and Board Change\n \nSound Oil, the Italian focused upstream oil and gas company, is pleased to announce that it has agreed to sell its Indonesian subsidiary, Mitra Energia Bangkanai Limited (\"Mitra\"), to Salamander Energy plc, the operator. The transaction involves the Company selling 100% of its shares in Mitra (whose only material asset is a 5% working interest in the Bangkanai Production Sharing Contract (\"PSC\")) in exchange for a total of up to US$7.1 million in cash, structured as follows:\n \n· US$4.5 million, payable immediately\n \n· US$1.1 million payable on the later of first gas from the Kerendan field or signature of a new gas sales agreement for the currently unsold gas in the Kerendan field\n \n· Up to US$1.5 million to be paid as a royalty out of revenues from a future discovery on the Bangkanai PSC\n \nA total of US$0.4 million of taxes is also immediately payable to the Indonesian tax authorities by the Company on this transaction and the Company has provided a tax indemnity to the purchaser.\n \nThe forward programme on the Bangkanai PSC involves the completion of the Kerendan development wells and the drilling of two water disposal wells after which it is planned to move the Drillco 1 rig to drill the West Kerendan-1 exploration well. The operator has advised that first gas from the Kerendan field is currently expected mid 2014 earliest.\n \nFollowing the exit of the Company from Indonesia, Ilham Habibie, a Non-Executive Director of the Company, has decided to leave the Board. The Board would like to thank Ilham for his significant contribution to the Company over many years.\n \nIlham Habibie commented:\n \n\"I have valued my time on the Board of Sound Oil and remain excited about the Italian high upside portfolio. I am pleased to confirm my intention to retain my shareholding and support the Company moving forward.\"\n \nShare Consolida...