Pacific to sell stake in Santos basin blocks to Karoon
TORONTO -- Pacific Exploration & Production has reached an agreement to sell its 35% working interest in five concession agreements—S-M-1101, S-M-1102, S-M-1037, S-M-1165 and S-M 1166—in Brazil’s Santos basin to Karoon Gas Australia.
Upon completion, Pacific will receive $15.5 million in cash for its interest in the blocks. In addition, the company may receive a subsequent payment of $5 million on commercial production reaching 1 MMboe from the blocks.
The deal remains conditional upon, among other things, approval from Brazil’s Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) and an approval order from the Superior Court of Justice in Ontario. The agreement follows Pacific’s application for insolvency protection in April.
