Linc mulling sale of Umiat
Linc Energy Ltd. is considering an offer to sell its Alaska assets.
The Australian independent recently received "unsolicited expressions of interest" to sell the undeveloped Umiat oil field on the North Slope and conventional assets in Wyoming.
In response to the solicitation, Linc has launched "a formal process to work with additional parties who have expressed an interest in the potential acquisition of the company's entire USA based oil and gas portfolio," the company said Sept. 3. Linc intends to make a decision by the end of the year. But, the company warned, "There is no assurance that these activities will result in a formal offer or binding arrangement."
"It is early days on the oil asset negotiations but it is always nice to receive unsolicited approaches on our assets that reconfirm the underlying value and provide third party validation," Linc CEO and Managing Director Peter Bond said in a statement. "We will work with the parties and update the market if we can agree final and binding terms."
Any sale of "core assets" would require shareholder approval.
- ERIC LIDJI
NordAq gets Chinese financing
NordAq Energy Inc. is moving ahead on its drilling plans for the North Slope and Cook Inlet thanks to a recently announced financial package from a Chinese firm.
The private investment group Chinanx has agreed to invest $90 million and provide a $150 million debt facility to help NordAq develop its Alaska portfolio, according to the two companies. NordAq said that it received an initial $20 million tranche on Sept. 9.
With the investment, NordAq can pursue "gross unrisked potential recoverable reserves" of 1.2 billion barrels of oil and 115 billion cubic feet of gas, according to the companies.
As part of the deal, Chinanx Honorary Chairman Doris Cheng is now the vice chairman of the NordAq board of directors, which the parties point to as one sign that the agreement "forms the basis for long-term cooperation between the two companies."
The recent revisions to the Alaska fiscal system - a 2013 law that survived a voter referendum in August - "facilitated" the deal by "signaling to the financial markets that Alaskans are committed to a stable fiscal regime," according to the two companies.
- ERIC LIDJI
See stories in Sept. 14 issue, available online Friday, Sept. 12, at www.PetroleumNews.com.