The company will sell its 5% stake in both PSCs for a cash consideration of $55m plus working capital adjustments of $1.3m.
In addition, a deferred cash payment will be made upon Risco’s participation in the extension of the ONWJ PSC.
Salamander said the amount of the deferred payment will be dependent on the timing and level of participation in the ONWJ PSC extension, and for a 5% participation, the payment will be capped at $4m.
According to the company, production attributable to the net 5% interests in the first half of 2011 averaged about 6,000boepd and proved and probable reserves attributable to the interests are estimated to be 13 million barrels of oil equivalent as at the mid-year 2011.
The PSCs are currently in their second extension phase and are due to expire in January 2017 (ONWJ) and September 2018 (SES).
