Elixir holds up Cliff Head deal with AWE

AWE and Elixir Petroleum have agreed to prolong the period for the latter to acquire a working interest in the producing Cliff Head oil field located offshore Western Australia.

According to the agreement, Elixir will acquire a 57.5% working interest in Cliff Head field located in the Perth Basin.

The two companies have agreed to extend the exclusivity period for due diligence from November 30 to December 18, 2015. The companies have also agreed that the exclusivity period can be further extended to January 29, 2016, previously December 24, 2015, on payment by Elixir to AWE of a 10% non-refundable deposit, Elixir said on Monday.

At the conclusion of the exclusivity period, Elixir says it is required to demonstrate to AWE that it has $3 million of financing in place for the transaction to proceed. Completion of the acquisition is scheduled to occur on or before February 29, 2016. All dates may be further amended by mutual agreement of the companies, said the company.

According to Elixir, the acquisition is subject to a number of conditions precedent including Elixir completing its technical and legal due diligence which is currently underway.

The Cliff Head project comprises an offshore wellhead platform linked to an onshore processing plant by twin 14-kilometre pipelines (one being for production fluid and the other a return line for water injection).

AWE has 57.5% interest, while Roc Oil, the operator, has 42.5% interest in the field.

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