AWE Sells Texas Shale Asset for US$190 Million to Repay Debt
January 26 2016 - 6:40PM
Dow Jones News
By Robb M. Stewart
MELBOURNE, Australia--Australian oil and natural gas producer
AWE Ltd. (AWE.AU) aims to wipe out its debt with a deal to sell a
minority position in a Texas shale-energy operation.
AWE said Wednesday it has agreed to sell its 10% working
interest in the Marathon Oil Corp.-operated (MRO) Sugerloaf project
to Carrier Energy Partners II LLC for US$190 million, before tax,
plus an additional US$9 million for past drilling costs.
The proceeds will be used to repay debt, leaving AWE with a net
cash position of about 60 million Australian dollars (US$42
million), it said.
AWE said the sale is expected to generate a non-cash profit
after tax of about A$16 million.
The Sugerloaf project in the Eagle Ford region of Texas covers
about 24,000 acres. Marathon Oil has a 55% stake in the project,
and Baytex Ltd. has about 28% through subsidiaries.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
January 26, 2016 18:25 ET (23:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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