AGL Energy said that, no capital gains tax will be payable in either Papua New Guinea (PNG) or Australia on proceeds from the sale. AGL Energy anticipates receiving the bulk of the proceeds by December 19, 2008 with minor cash flows relating to purchase price adjustments and a pipeline license interest occurring in January 2009.
The sole buyer of the bulk of the interests for A$795 million was the Merlin Petroleum Company, an existing co-venturer and an affiliate of Nippon Oil Exploration.
According to AGL, a pipeline license interest was sold for $5 million and split approximately in equal stakes between Merlin and an existing landowner company, Petroleum Resources Kutubu.
Michael Fraser, managing director of AGL, said: “These proceeds will provide a valuable buffer against the current financial markets turmoil. They also give us the flexibility to transact on future growth options across all businesses as evidenced by the purchase of the Gloucester basin coal seam gas assets.”
AGL is an Australian integrated energy company that deals with sustainable energy for investors, communities and customers. It operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio.
AGL has Australia’s largest retail energy and dual fuel customer base. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas and biomass. AGL is Australia’s largest private owner and operator of renewable energy assets and is looking to further expand this position by exploring a suite of low emission and renewable energy generation development opportunities.
