New Zealand Oil & Gas has successfully completed the acquisition of the Amadeus Basin from Central Petroleum.
The company initially announced on 25 May that it had agreed to acquire interests in three gas producing projects held by Central Petroleum located in the Amadeus Basin, Northern Territory.
On 20 September, the deal was unconditional with the satisfaction of all conditions precedent.
The transaction comprises a 25 per cent interest in the Mereenie oil and gas field; a 50 per cent interest in the Palm Valley gas field; and 50 per cent interest in the Dingo gas field.
New Zealand Oil & Gas has acquired 70 per cent of the assets sold by Central Petroleum, while Cue Energy has taken on the remaining 30 per cent.
The effective date of the acquisition is 1 June 2020, and Central Petroleum has received a cash payment of $29 million adjusted for revenues earned and costs incurred during that period.
The company alongside Cue will also fund Central Petroleum’s share of the costs of exploration, appraisal and development up to a capped total of $40 million, with respective companies required to pay their ow share of the costs.
Developments include four well recompilations that were undertaken prior to completion.
Central Petroleum remains operator and manages the gas sale function on behalf of New Zealand Oil & Gas and Cue under a joint marketing arrangement.
Chief executive Andrew Jefferies said the acquisition fits the company’s strategy for growing the business by acquiring production.
“These assets are solid producers, with multiple development and exploration pathways to growth,” Jeffries said.
“They are pipeline connected to an excellent future proof market with a high-quality operator of a scale, capability and value set that compliments ours.”
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