https://www.miningweekly.com

AWE completes Sugarloaf sale

17th March 2016

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – ASX-listed AWE has completed the $190-million sale of its 10% working interest in the Sugarloaf project, in Texas, to US-based Carrier Energy Partners.

The two companies in January agreed to the sale, with the proceeds to be used to repay debt drawn under AWE’s debt facility, and to substantially strengthen the company’s balance sheet.

MD and CEO Bruce Clement said on Thursday that the sale of Sugarloaf was a major step in reshaping AWE to grow sustainably in a low oil price environment.

“We have removed significant recurring capital expenditure and strengthened the company’s balance sheet through the Sugarloaf sale. We will repay all debt and anticipate being positive net cash at the end of March.”

In the short to medium term, AWE’s focus would be on low-cost, high-value gas assets with consumer price index linked contracts, Clement said.

“We are developing the first stage of the Waitsia gas field, in Western Australia’s Northern Perth basin, where AWE will become a low-cost producer. We are also focused on increasing sales revenue from east and west coast gas markets as we negotiate new gas supply contracts for the Waitsia, BassGas and Casino projects over the next two to three years.”

AWE in January this year made a final investment decision for the first stage of development for the Waitsia gas project. The A$17.5-million project would comprise the installation of new infrastructure and upgrades to existing assets, which would connect the recently flow-tested Waitsia 1 and Senecio 3 gas wells to the Xyris production facility.

Meanwhile, Clement pointed out that should oil prices recover, AWE also had a 50% interest in the undeveloped Ande Ande Lumut oil project, in Indonesia, where a final investment decision was expected by the end of the 2016 calendar year.

Edited by Creamer Media Reporter

Comments

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
Alco-Safe

Developed to exceed the latest EN 15964 standards for police breathalysers proving that it will remain accurate and reliable for many years to come.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Mining Weekly Editor Martin Creamer
Copper shares soar and green hydrogen goes digital
26th April 2024
Magazine cover image
Magazine round up | 26 April 2024
26th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.432 0.472s - 106pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: