Ref. #054/16
ASX Ltd
Companies Announcement Office Electronic Lodgement System
COMPLETION OF SALE OF BEACH EGYPT
Beach Energy Ltd (ASX: BPT, "Beach") is pleased to advise that it has completed the sale of Beach Petroleum (Egypt) Pty Ltd ("Beach Egypt"), whose core asset is a 22% interest in the Abu Sennan Concession, to Rockhopper Exploration plc (AIM: RKH, "Rockhopper").
Transaction terms provide for cash consideration of up to US$20.5 million. An upfront payment of US$10.8 million was received on completion, and deferred consideration of approximately US$7.4 million is expected over the next 12 months subject to receipt of outstanding receivables. Payments received by Beach prior to completion include a deposit of US$1.1 million and outstanding receivables of US$1.2 million.
In addition to cash consideration payments, a post completion adjustment will be agreed and settled by early Q2 FY16 to account for net cash flow attributable to the assets from 1 January 2016 to completion. A payment to Beach is expected in relation to this adjustment.
Beach's CEO, Matt Kay, said "This transaction completes our exit from Egypt and is another step in our ongoing process of portfolio optimisation. Divestment of non‐core assets is releasing capital and resources, and delivering cost savings and operating efficiencies."
Yours sincerely,
Matt Kay
Chief Executive Officer
For more information please contact the following on +61 8 8338 2833 CorporateMatt Squire Group Executive Corporate Development and Strategy
Investor Relations
Derek Piper Investor Relations Manager
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Beach Energy Limited published this content on 17 August 2016 and is solely responsible for the information contained herein.
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