Pan Pacific Petroleum (PPP) has executed an agreement to sell its 5% interest in the Vietnamese block 07/03 in the Nam Con Son basin, to Repsol Exploracion S.A for US$5 million.
PPP’s executive director Grant Worner said after the sale PPP will be in a strong financial position with no debts and estimated cash of circa $16 million and liquid investments of $3 million.
“Monetisation of this investment at this time means PPP’s current assets will be approximately twice the market capitalization of the company,” he said.
“PPP will then have the freedom to deploy its capital in a range of affordable investment opportunities rather than committing to and being reliant on a single investment that is significantly larger than existing funding capabilities.”
The company is actively reviewing new oil and gas opportunities as well as opportunities in other sectors.
This agreement comes after PPP agreed in February to sell all the shares of its subsidiary, WM Petroleum (WMP), which owns 15% interest in the Tui area oil fields off Taranaki in New Zealand, to Kuala Lumpur-based Tamarind Classic Resources.
Tamarind will pay $400,000 for all of PPP’s shares in WMP and on completion of the transaction, PPP will make a net payment to Tamarind of $5.45 million in the form of cash and inventory.