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Sacgasco pulls out of PEP11 deal in the offshore Sydney Basin

Gasoil News - Published on Mon, 11 Feb 2019

Image Source: Energy News Bulletin
Sacgasco has determined it does not wish to proceed with the option to acquire RL Energy and its related Farm In arrangement with respect to PEP11 in the offshore Sydney Basin. Sacgasco previously announced on 19 November 2018 that it had acquired the exclusive option to 100% of the issued capital of RL Energy, who have signed a Farm In Agreement with Asset Energy to earn a 60% Working Interest in Petroleum Exploration Permit PEP11.

Upon review by the Board (other than Mr Channon, who recused himself from any discussion on the matter), Sacgasco has determined not to exercise the PEP11 option. The Board concluded after extensive due diligence that the risks associated with the government regulatory procedures and complicated joint venture arrangements and associated time frames, make it a project that is not suitable for the Company given the activity levels required for its Californian business. Sacgasco will continue to focus on growing production from its multiple projects in the onshore Sacramento Basin in California.

Sacgasco’s Managing Director Gary Jeffery commented: 'PEP11 is a technically interesting project, but the uncertainty around approval risks and timing associated with regulatory and public processes make the project unattractive for Sacgasco shareholders. Sacgasco has many opportunities to grow production in the Sacramento Basin with our ambition to soon become the 2nd largest gas producer in Northern California.'

Source :

Posted By : Rabi Wangkhem on Mon, 11 Feb 2019
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