AWE completes Tui sale
Wednesday, Mar 01, 2017
  • AWE has completed the sale of its 57.5% interest in the Tui Area Oil Project, including the transfer of Operatorship, to Tamarind
  • Sale estimated to generate non-cash profit after tax of A$27 million (unaudited)
  • Reduces AWE’s future abandonment liabilities by A$67 million*

AWE Limited (ASX: AWE) announced it has completed the sale of its 57.5% interest in the Tui Area Oil Fields to Tamarind Management Sdn Bhd (“Tamarind”) for cash consideration of US$1.5 million before tax.

Tamarind has acquired all of the outstanding shares of AWE New Zealand Pty Ltd and AWE Taranaki Limited, which together own 57.5% of Tui. The sale includes Operatorship, assets and inventory, and a working capital cash balance of US$10.8 million.

AWE estimates a completion payment to Tamarind of US$2.2 million for purchase price adjustments. These adjustments include the close out of unutilised Brent oil price hedges.

The sale of Tui is estimated to generate a non-cash profit after tax of A$27 million (unaudited), after purchase price adjustments, and has reduced AWE’s provisions for future abandonment liabilities by A$67 million*.

David Biggs, CEO and Managing Director of AWE, said:

“Completion of the Tui sale further strengthens AWE’s balance sheet and moves us closer towards our goal of transitioning from legacy production assets to new growth assets.

“Being a late life asset, the sale of Tui will have minimal impact on our 2P Reserves and 2C Contingent Resources. However, our future abandonment liabilities have reduced significantly by A$67 million*.

“AWE is now focused on developing Stage 2 of the Waitsia gas project and we are looking to acquire additional production
assets,” Biggs said.

Ian Angell, CEO of Tamarind said:

“The Tui asset and the AWE team in New Plymouth represent a great starting point for Tamarind as an oil producer and operator.

“The AWE team has been very supportive through the closing process and we are confident that we can continue the great performance of Tui going forward which will bring benefits to all stakeholders – Tamarind, our New Zealand employees and contractors, and the New Zealand regulatory bodies and treasury,” Angell said.

The Tui Area Oil Fields comprise the Tui, Amokura and Pateke fields which are located approximately 50 km off the coast of Taranaki, New Zealand, in PMP 38158. Production from each field is fed into the Tui gathering system and then into the FPSO vessel, the “Umuroa”.

* Note: The sale of Tui, announced to the market on 13 December 2016, was referenced in AWE’s HY17 results using an exchange rate of A$/US$ 0.72 cents calculated as at 31 December 2016. The A$/US$ exchange rate used in this announcement is 0.77 cents calculated on completion as at 28 February 2017.

The Joint Venture partners in PMP 38158 are now:

Tamarind Management Sdn Bhd (Operator) (via subsidiaries) 85%
Pan Pacific Petroleum (via subsidiaries)

For more information, please visit:

For additional information on this project, please visit our ProjectsOGP database

Member Profiles

Featured Profile

Featured Videos

Featured Case Studies