Australian junior oil and gas producer Mosaic Oil said Friday it had sold
its wholly owned subsidiary in Papua New Guinea, Mosaic Oil Niugini Limited,
for $11 million, to a "major international oil and gas company" it declined to
identify.
MONL's primary asset is a 28.57% interest in PRL08, which contains the
Kimu gas discovery, where technical studies focused on defining the contingent
resource and commercialization options were ongoing, Mosaic said in its most
recent March quarter report.
In addition to the upfront cash payment, Mosaic can opt to receive either
$0.10/gigajoule for any proven plus probable reserve increases prior to 31
December 2012 or a fixed $2.7 million at any time before an appraisal well was
drilled, the company said in a statement Friday.
Mosaic said the buyer wished to remain unnamed until at least the
pre-emption process had been concluded. It anticipated completing the sale in
late July or early August.
"The PNG asset was identified as being non-core to the company with an
uncertain and very long-term commercial outcome if it were to proceed to
development and production," company CEO Alex Parks said in the statement.
"The sale leaves Mosaic with a very solid cash position to fund
activities in our Surat-Bowen, New Zealand and Cooper-Eromanga Basin acreage."
The company forecast its total production for the year ending June 30,
2010 at 500,000 barrels of oil equivalent.
its wholly owned subsidiary in Papua New Guinea, Mosaic Oil Niugini Limited,
for $11 million, to a "major international oil and gas company" it declined to
identify.
MONL's primary asset is a 28.57% interest in PRL08, which contains the
Kimu gas discovery, where technical studies focused on defining the contingent
resource and commercialization options were ongoing, Mosaic said in its most
recent March quarter report.
In addition to the upfront cash payment, Mosaic can opt to receive either
$0.10/gigajoule for any proven plus probable reserve increases prior to 31
December 2012 or a fixed $2.7 million at any time before an appraisal well was
drilled, the company said in a statement Friday.
Mosaic said the buyer wished to remain unnamed until at least the
pre-emption process had been concluded. It anticipated completing the sale in
late July or early August.
"The PNG asset was identified as being non-core to the company with an
uncertain and very long-term commercial outcome if it were to proceed to
development and production," company CEO Alex Parks said in the statement.
"The sale leaves Mosaic with a very solid cash position to fund
activities in our Surat-Bowen, New Zealand and Cooper-Eromanga Basin acreage."
The company forecast its total production for the year ending June 30,
2010 at 500,000 barrels of oil equivalent.
