By Juzel L. Danganan
MANILA, Feb 17 (PNA) — Australian firm Nido Petroleum Ltd. has completed the buy-out of Galoc Production Company WLL from Otto Energy Limited, increasing its stakes in the Galoc field to 55.88 percent.
”Nido Petroleum Limited is pleased to announce that all remaining conditions with respect to the transaction have been finalized and the Company has completed its acquisition of 100 percent of the shares in Galoc Production Company WLL,” the company said in a release with the Australian bourse Tuesday.
The transaction increased Nido’s stake to 55.88 percent in the Galoc block from the previous 22.88 percent share.
In another disclosure with the Australian Stock Exchange Tuesday, Otto said its cash reserves for the transaction had been completed, amounting to USD 106 million.
Otto noted that Nido paid USD 77.4 million on February 17, completing the deal, with its previous cash payment of USD 28.6 million on Feb. 13.
Otto and Nido initially signed the Sale and Purchase Agreement (SPA) for the transaction on Dec 12.
Nido Petroleum earlier said the financing for the transaction would be paid through its current cash capital and through a USD 120-million loan from Nido parent-Bangchak Petroleum Public Co. Ltd. of Thailand. It holds 81.41 percent stake in Nido.
Last month, Nido’s Managing Director Phil Byrne disclosed that the company was planning to boost the Galoc block’s production to 20,000 barrels per day by 2017.
The target is a jump from its fourth quarter average output of 6,703 oil barrels per day.
The remaining interest in the Galoc block is held by Galoc Production Company No. 2 Pte Ltd at 26.84 percent, Oriental Petroleum & Minerals Corp. and Linapacan Oil Gas & Power Corp. at 7.79 percent, Philodrill Corp. at 7.21 percent and Forum Energy Philippines Corp. at 2.28 percent.
Nido Petroleum is a South East Asian oil and gas exploration and production company, with projects in the Philippines and Indonesia.
Otto Energy is an oil and gas company, engaged in exploration, development and production. It has projects in the Philippines and Tanzania.
On the other hand, Bangchak Petroleum is involved with refining, marketing and selling of petroleum products in Thailand. (PNA)