Australian oil and gas group Novus Petroleum has moved its focus to the United States after selling its entire Egyptian portfolio to Apache Corp for $US62 million.
In turn, Novus has purchased from Apache a 30 per cent interest (and associated deep exploration rights) in the producing Stratton gas fields, located onshore Texas in the Gulf of Mexico Basin, a statement by the company said.
Novus, Australia's fourth largest pure upstream oil and gas company, said that over the life of its Egyptian assets, they generated a surplus cash flow of $US32 million - equivalent to a rate of return of 17 percent.
"Novus will book a significant profit on the sale of this asset," the company said.
The transactions, effective July 1, 2001 are earnings and earnings per share (EPS) positive from 2002 and will deliver Novus a net increase in its attributable oil and gas 2P reserves of more than 4 million boe.
"The US assets purchased from Apache will fit very well with our Padre Island assets, while we are exiting Egypt totally." Managing director Bob Williams was quoted as saying by the West Australian.
"Apache have a strong reputation as a major US independent and we have seen their excellent operational skills applied in joint properties with them in Australia and Egypt.
"But in Egypt, Novus was finding it difficult to grow a country business unit beyond the properties we hold with Apache."
He said good opportunities in Egypt are rare however Apache was keen to consolidate its position in its joint assets with Novus.
"This is a classic win-win for both companies," he said – Albawaba.com
© 2001 Al Bawaba (www.albawaba.com)
