Beach Petroleum Limited (ASX:BPT)
Adelaide, May 20, 2009 AEST (ABN Newswire) - Beach Petroleum Limited (ASX:BPT)(PINK:BEPTF) further to the ASX release on 3 April 2009, the directors of Beach Petroleum Limited (Beach) are pleased to announce that the Company has today completed the sale of its 40% interest in the Tipton West Joint Venture coal seam gas ("CSG") asset to Arrow Energy Limited (Arrow)(ASX:AOE), for consideration of up to A$400 million.
Beach has now received A$260 million in cash and been issued 20,613,699 Arrow shares.
The key elements of the transaction are summarised below.
Consideration
Consideration is comprised of cash, Arrow shares and contingent payments as follows:
- A$260 million cash - paid on 20 May 2009;
- A$70 million worth of Arrow shares - issued on 20 May 2009;
- Up to A$40 million cash for the booking of additional gross 3P reserves (at the rate of A$0.06/GJ) relative to the Tipton West Joint Venture's 31 December 2008 reserves position, up to and including the 31 December 2014 reserves certification;
- A$15 million cash upon gas owned by Arrow supplying any liquefied natural gas ("LNG") project no later than 31 December 2016; and
- A$15 million cash upon any LNG project producing an annualized equivalent of 1 million tonnes per annum (mtpa) of LNG using gas supplied from Arrow's upstream tenements no later than 31 December 2017.
Based on Arrow's closing share price of $3.87 on 19 May 2009, it should be noted that the number of Arrow shares issued to Beach exceeds the $70 million value attributed to them in the Share Sale Agreement (Agreement) due to the volume weighted average price (VWAP) formula used to calculate the number of shares to be issued. The Agreement provides for the acceleration of most of the contingent payments under certain circumstances, and some restrictions apply to the disposal of the Arrow shares being issued to Beach.
Contact
Reg Nelson
Managing Director, FAusIMM
Tel: +61-8-8338-2833
Fax: +61-8-8338-2336
Beach Petroleum Ltd
www.beachpetroleum.com.au
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