AUSTRALIAN junior oil and gas company Cooper Energy will need to find another buyer for its 55 per cent interest in the Tangai-Sukananti KSO field in Indonesia after it was unable to complete its sale to ACL International Ltd and Lamara Energy Pte.
Under the terms of the original agreement, Cooper was set to receive a total consideration of US$4.3 million inclusive of working capital upon completion of the transaction.
Cooper Energy said a failure to obtain regulatory approvals required for the transaction to be completed on time and a decision by the proposed buyers not to seek an extension to the original agreement schedule had seen the deal fall through.
The Australian E&P company said it will now pursue other options for sale of the asset, which is currently producing at approximately 500 bopd and is cash generating.
Cooper Energy managing director David Maxwell said that non-completion of the transaction would have a favourable impact on the company’s operating cash flow and sales revenue.
“Our intention remains to divest the Tangai-Sukananti KSO so that we can concentrate our efforts on our growth projects in the Gippsland Basin. We will continue the sale process and, in the meantime, benefit from the production, revenue and cash flow generated from the KSO” Mr Maxwell said.