An agreement has been reached to sell Austral Pacific Energy’s interest in the licenses to Foreland Oil, a subsidiary company of Rift Oil, for $5 million. Included in the agreement is Austral’s 35% interest in the Coral Sea drilling rig and a dismissal of any and all claims or litigation between the companies.
The asset sale completes Austral’s phased exit from Papua New Guinea (PNG) and affords a valuable cash injection which will be used to further reduce the company debt profile and support drilling activities at Cheal, Kahili and Cardiff.
Thom Jewell, CEO and president of Austral Pacific Energy, said: The commercialization of gas resources is a major challenge in the PNG foreland basin. The company made a strategic decision to monetize its gas resources in the ground rather than pursue a significant capital spending program targeting a long term gas market.
