• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 8 days America should go after China but it should be done in a wise way.
  • 2 days Even Shell Agrees with Climate Change!
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 4 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 6 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in

Entek to Sell Off Entire Gulf of Mexico Portfolio

Australian Entek Energy Limited has entered into an agreement with Houston-based Peregrine Oil & Gas to sell the company’s entire Gulf of Mexico portfolio for almost $3 million as market conditions continue to take their toll.

Entek will be divesting its 38-percent interest in the GA A133 block and its 25-percent interest in the PN 975 block, as well as its royalty interest in two other blocks, VR 341 and 342.

By way of background, the GA A133 and PN 975 gas developments have now both been shut-in following their natural depletion and are scheduled to be plugged and abandoned (P&A) during the course of this year and next, according to an Entek press release.

Related: Increasing Outages Continue To Stabilize Oil Prices

As part of this deal, Peregrine, which operates both these blocks, has assumed all of Entek’s P&A obligations in GA A133 and PN 975 including the provision by Peregrine for all bonding requirements which have recently been increased by the relevant US Government authorities. Entek’s share of these bonding and abandonment obligations is estimated to total in excess of US$1 million. In addition, Peregrine has agreed to pay Entek a cash consideration of approximately US$1.86 million.

Accordingly, the value attributed to the VR 341/342 oil and gas royalty stream sold to Peregrine as part of this transaction is approximately US$3 million, the company further said.

Related: Petrobras Offloads $1.4B In Assets Amidst Political Turmoil

Entek Chairman Graham Riley commented: “Our decision to exit the Gulf of Mexico follows a strategic review by your Board in light of the continuous challenging oil and gas price and capital market conditions which, coupled with new onerous bonding requirements for future P&A obligations, has significantly restricted the participation of junior companies like Entek in U.S. offshore producing assets. This transaction eliminates the significant and open ended funding obligations for the abandonment of Entek’s two depleted Gulf of Mexico gas interests and stabilizes the Company’s working capital position to around US$3 million upon receipt of funds expected shortly.”

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News