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 non‐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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