Otto Energy’s board of directors has approved the sale of the oil company’s stake in the Galoc Production Company (GPC).
GPC is the holder of Otto’s 33% interest in the Galoc oil field, located in Service Contract 14 C1, offshore the Philippines.
The company said in a statement that the resolution to approve the sale of shares was put to the General Meeting of Otto Energy held today, January 20, 2015, and it was passed on a show of hands, with 99.4% voting in favor of the sale.
The company further notes that closing of the transaction is expected to occur within two weeks.
Nido beats Risco to it
To remind, Otto informed in September that the company had executed a sale and purchase agreement to divest 100% of the shares in the GPC to Risco Energy Investments. Under that agreement, Risco agreed to pay $101.4 million. However, in December 2014, Otto received a superior proposal from Nido Petroleum of $108 million. Subsequently, Otto terminated the Risco transaction due to Risco choosing not to match Nido’s offer.
With Nido’s offer approved, its interest in the Galoc oil field will now increase to 55.88 per cent and it will assume operatorship of the project. The acquisition will increase Nido’s production base to more than 4,000 barrels of oil per day.
Offshore Energy Today Staff