Sona withdraws from Bualuang deal. For now
Malaysia’s Sona Petroleum has informed it will not proceed with the previously announced agreement with Salamander to acquire a share in Salamander’s Bualuang field offshore Thailand.
Both, Sona and Salamander have issued statements saying that they intend to terminate by mutual agreement the sale and purchase agreement signed in 2014, in respect of an effective 40% interest in the Greater Bualuang Area, offshore Thailand.
The reason for the termination is a recommendation by Salamander Board for its shareholders to vote in favor of a takeover offer Ophir Energy made on November 24, 2014.
Despite the mutually agreed termination of the Thailand deal, Sona has said, given its knowledge of the asset, it remains interested in acquiring a stake in the Greater Bualuang area.
“Sona Petroleum, therefore, intends to approach Ophir Energy Plc or Salamander regarding a revised transaction post their respective shareholder meetings on 6 February 2015 based on new terms reflecting prevailing market conditions and level of oil prices. At the same time Sona is also considering other alternative qualifying assets opportunities,” Sona said in the filing.
In its operational update, Salamander said that Bualuang field during the second half of the 2014 averaged 15,100 bopd, exceeding management expectations. The full year average production for Bualuang of 12,500 bopd is the highest annual rate in the history of the field, the company said.
Offshore Energy Today Staff