AWE 0.00% 94.0¢ awe limited

Ann: AWE Completes Divestment Program with Tui Sale, page-3

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  1. 2,267 Posts.
    lightbulb Created with Sketch. 24
    FY16 report - tui has 2P reserves of 1.1mmboe and 2c 0.9mmboe

    Provisions for restoration and abandonment total for all AWE was $218.515M

    announcement said it would reduce AWE's provisions by 33%

    so selling it for US$1.5M will mean avoidance of provisions of about $72M

    hence non cash profit after tax of about $28M

    they lose the potential for 2P+2C of 2mmboe

    Usually in this sort of deal the seller would retain some interest in the permit, PMP38158.
    Like if production greater than X or Reserves greater than Y the seller gets a cut.
    They don't seem to have done so.

    The buyer may find more oil.
 
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