Australian oil company AWE has entered into an agreement with an unnamed firm to sell its working interest in the Cliff Head oil field located in the Perth Basin, offshore Western Australia.
As a consequence, AWE will not be proceeding with the proposed transaction to sell its 57.5% interest in the Cliff Head field to Elixir Petroleum, an international oil and gas exploration company. Roc Oil is the operator of the Cliff Head field with the remaining 42.5% interest.
To remind, Elixir and AWE were previously in agreement for Elixir to acquire the Cliff Head stake. However, in November last year the pair agreed to prolong the period of due diligence. After the period of exclusivity expired, negotiations with Elixir continued until AWE found a different buyer.
Elixir said: “The Board of Elixir is disappointed that AWE chose not to engage with Elixir about the status of its sale process until this late stage.”
The company also added: “Elixir will continue to review and assess other oil and gas production opportunities in conjunction with maintaining its focus on the conventional Petra Project in Colorado which on its own has the potential to be highly value accretive to Elixir shareholders.”
The Cliff Head project comprises an offshore wellhead platform linked to an onshore processing plant by twin 14-kilometre pipelines, one being for production fluid and the other a return line for water injection.
Offshore Energy Today Staff