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Beach exits Egypt

By  AOG Staff Tuesday, 16 August 2016 20:56
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ASX-listed Beach Energy has completed the sale of Beach Petroleum (Beach Egypt), whose core asset is 22% interest in the Abu Sennan concession, to UK’s Rockhopper Exploration for US$20.5 million.

Beach CEO Matt Kay said, “This transaction completes our exit from Egypt and is another step in our ongoing process of portfolio optimization. Divestment of nonā€core assets is releasing capital and resources, and delivering cost savings and operating efficiencies.”

An upfront payment of $10.8 million was received on completion, and deferred consideration of approximately $7.4 million is expected over the next 12 months.

Payments received by Beach prior to completion include a deposit of $1.1 million and outstanding receivables of $1.2 million.

In addition to cash consideration payments, a post completion adjustment will also be agreed and settled by early Q2 FY16 to account for net cash flow attributable to the assets from 1 January 2016 to completion. 

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