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Otto closes Philippine asset sale

19th February 2015

Otto Energy has completed the sale of Galoc Production Co. WLL (GPC) to Nido Petroleum

Otto Energy has completed the sale of Galoc Production Co. WLL (GPC) to Nido Petroleum
The planned farm-down of Otto’s SC55 acreage together with the funding of USD 24.5m from BHP Billiton positions Otto favourably for the drilling of the Hawkeye-1 exploration well

Final proceeds were received from Nido on Feb. 17.

Cash reserves following completion are as follows; cash, as at Febuary 13, USD 28.6m; final proceeds from Nido, USD 77.4m; total: approximately USD 106m (AUD 136m).

The final proceeds from Nido reflect adjustments from the July 1, 2014, effective date of the transaction.

Otto will utilise cash reserves remaining after payment of the proposed capital return to undertake the forward exploration programs at SC55 in the Philippines, and two licences onshore Tanzania. The planned farm-down of Otto’s SC55 acreage together with the funding of USD 24.5m from BHP Billiton positions Otto favourably for the drilling of the Hawkeye-1 exploration well.

Matthew Allen, Otto’s CEO said: “Delivering financial close of the GPC sale is a significant milestone for Otto in this environment of depressed oil prices. Otto has a very strong balance sheet and is well advanced on prospective exploration activities in both the Philippines and Tanzania. Pleasingly, we have the financial capacity to undertake these high impact exploration activities and to pay a significant capital return to Otto’s loyal shareholders.” 

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