Canada’s Pacific Exploration & Production Corp. will sell its 35% working interest in the Karoon Blocks concessions offshore Brazil. The company reached an agreement with Karoon Gas Australia Ltd. and Karoon Petroleo & Gas Ltda., an affiliate of Karoon.
The S-M-1101, S-M-1102, S-M-1037, S-M-1165 and S-M 1166 blocks will be sold, and Pacific Exploration will receive US$15.5 million in cash upon closing from Karoon, the company said Sept. 27.
Pacific Exploration could also receive US$5 million subsequently when commercial production reaches 1 million barrels of oil or oil equivalent.
The agreement remains conditional upon approval from Brazil’s Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis, an approval order from the Superior Court of Justice in Ontario, Canada, and other requirements.
Dennis Mills, chair of the independent committee of the board of directors, said Pacific Exploration’s long-term goal to improve liquidity aligns with the sale.
Recommended Reading
US Drillers Add Oil, Gas Rigs for First Time in Five Weeks
2024-04-19 - The oil and gas rig count, an early indicator of future output, rose by two to 619 in the week to April 19.
Strike Energy Updates 3D Seismic Acquisition in Perth Basin
2024-04-19 - Strike Energy completed its 3D seismic acquisition of Ocean Hill on schedule and under budget, the company said.
Santos’ Pikka Phase 1 in Alaska to Deliver First Oil by 2026
2024-04-18 - Australia's Santos expects first oil to flow from the 80,000 bbl/d Pikka Phase 1 project in Alaska by 2026, diversifying Santos' portfolio and reducing geographic concentration risk.
Iraq to Seek Bids for Oil, Gas Contracts April 27
2024-04-18 - Iraq will auction 30 new oil and gas projects in two licensing rounds distributed across the country.
Vår Energi Hits Oil with Ringhorne North
2024-04-17 - Vår Energi’s North Sea discovery de-risks drilling prospects in the area and could be tied back to Balder area infrastructure.