WHL Energy is selling its last oil and gas asset which is located offshore Australia thus changing its focus from oil and gas to “internet of things”.
WHL entered into a conditional Sale and Purchase Deed with Austral Exploration for the sale of the company’s 100% interest in Exploration Permit VIC/P67.
Exploration Permit VIC/P67 is located in the Otway Basin, approximately 200 kilometers off the south coast of Australia. The permit also contains the La Bella gas and condensate field.
The La Bella 3D seismic data has defined a portfolio of 14 prospects within VIC/P67 containing total best estimate prospective resources of 1044 bcf of gas and 31.2 MMbbls of condensate and LPG.
WHL said on Thursday that the sale would be completed after the company obtains shareholder approval, if required, before March 31, 2017, and relevant authority approvals of the Deed and approval of a suspension and extension application under the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
As consideration for the sale, a royalty comprising one percent of the sales gas revenue to a maximum of A$7.5 million ($5.75 million) will be granted to WHL under a Royalty Deed entered into by WHL and Austral.
WHL said that, due to the proposed change of focus for the company, the sale of the company’s final oil and gas asset was seen as the best outcome for the company and its shareholders.
Namely, the company announced in September a merger implementation agreement for the acquisition of “internet of things” company, Quantify Technology Limited. A shareholders meeting to approve the proposed acquisition of Quantify Technology will be held on November 30, 2016.