Spring Energy announces the sale of 15% in PL 378 (containing the Grosbeak discovery), 20% in PL 375 (containing the Beta discovery) and 20% in PL 551 to Talisman Energy Norge AS (Talisman) for an amount between USD 114,5 million to USD 129,5 million pending certain near term milestones.
As part of the transaction, Talisman will also take over Spring Energy’s remaining carry commitments in the same licenses.
The asset sale is in line with Spring Energy´s strategy of adding and monetizing value whilst at the same time continuing to build a portfolio of attractive assets. Following the sale, Spring Energy will be in a considerably stronger financial position to accelerate and expand its growth plan. As previously announced, the Company’s exploration program was already fully funded until the beginning of 2012 and the proceeds from the sale will enable Spring Energy to further develop its portfolio of exploration assets, as well as enable the Company to pursue the development of selective discoveries through to the production phase.
Development of both Grosbeak and Beta discoveries would involve significant capital expenditures and Talisman is well positioned to bring these assets forward through development to production in due course.
The Company now looks forward to an exciting 18 months ahead during which Spring Energy expects to participate in 8-9 explorations wells expected to add an additional 80-100 million barrels of contingent resources to its asset base. Spring Energy will also actively pursue opportunities in the forthcoming licensing rounds and continue to pro-actively screen the asset market.
In addition, the recent and very promising Maria discovery on PL 475BS will be matured towards a development decision and the development plans (PDO) for the Bream discovery are well under way.
The transaction is subject to approval from the Norwegian Authorities.
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Source: Springenergy, September 9, 2010: