Mitra Energy Inc., Vancouver, BC, has signed a sale and purchase agreement with Quadrant Energy Pty. Ltd., Perth, and Santos Ltd., Adelaide, to purchase 100% of Stag oil field offshore Western Australia.
The sale price of $10 million cash is a fraction of the original $50 million-price offered by the failed bidder Sona Petroleum Bhd. of Kuala Lumpur last year (OGJ Online, Nov. 2, 2015).
The transaction, which includes related petroleum production licence WA-15-L and pipeline licence WA-6-PL, has an effective date of July 1.
Under terms of the agreement, Mitra may also be responsible for some contingent payments after 2017 of as much as $15 million that are linked to future expansion of the field and oil price appreciation above agreed price levels.
The transaction is expected to be completed by mid-September, subject to regulatory approvals.
The acquisition provides Mitra with a proved oil resource of 10.1 million bbl and immediate cash flow with the field currently producing 3,750 b/d via the Dampier Spirit floating storage and offtake vessel.
Mitra says future work planned for Stag include one appraisal pilot well and three infill producers to the western part of the field in 2017. Up to three more wells are planned for 2018 as well as potential for appraisal of undrilled exploration prospects at Hart and Stag South.
In connection of the acquisition, Mitra will conduct a private placement to raise a total of as much as $50 million. Much of the placement will be directed to Mitra’s major shareholders.
The sale to Mitra replaces the failed acquisition by Sona Petroleum (OGJ Online, June 23, 2016).
Stag field lies 60 km offshore Dampier and has been on stream since 1998.
Remaining reserves are 10 million bbl of proved oil, 14.6 million bbl of 2P oil, and 18.6 million bbl of 3P oil reserves.
Field operator Quadrant held 33.33% and Santos, 66.66%.
