Australian energy company Cooper Energy has decided to divest interest in a project onshore Indonesia, aiming to put all of its efforts on its offshore assets in Australia.
Cooper Energy is selling a 55 percent stake in the Tangai Sukananti project in the South Sumatra, Indonesia, to its compatriot Bass Strait Oil Company, subject to the approval by Bass shareholders. The transaction is expected to take three months to complete.
Cooper Energy Managing Director, David Maxwell, said that the decision to divest its interest in the Indonesia KSO had been driven by the decision to concentrate its resources on its gas growth projects in the offshore Gippsland Basin, in Australia.
He said: “The Tangai-Sukananti KSO offers significant upside, as has been demonstrated by the results of our workover and drilling program and the development plan prepared to lift output.”
Cooper Energy is currently a 13.5% shareholder in Bass, and is represented on that company’s board of directors by Hector Gordon, Executive Director, Production and Exploration.
Maxwell added: “While the needs and opportunity of our growth projects in the Gippsland Basin mean Cooper Energy is no longer the right interest-holder for the KSO, we are pleased that Bass has this opportunity and the prospect of ongoing indirect involvement as a Bass shareholder.”
Under the terms of the agreement, Cooper Energy will receive total consideration of A$5.7 million comprising a combination of cash and shares in Bass, which will see Cooper increase its interest in Bass to 24.09%.