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AWE to Operate Tui as Transworld Becomes Minority Shareholder
3 February 2006 - AWE becomes operator of Tui Area oil field in share swap deal with Transworld group.
Sydney-based Australian Worldwide Exploration Ltd will become the operator for the Tui Area oil field in offshore Taranaki after acquiring a further 22.5% interest in PMP 38158 from the Houston-based Transworld group.
The purchase will give AWE a 42.5% equity in both the Tui mining licence and the Hector South sub-block of PEP 38483.
In a share swap deal Transworld will gain an 11% stake in AWE through the issue of 48.66 million new fully paid ordinary AWE shares to Transworld.
AWE have become a major player in offshore Taranaki with operatorship of three exploration permits as well as the Tui mining permit.
Transworld principal, John Deuss, will be invited to join the AWE board. Managing director of AWE Bruce Philips said: “Mr Deuss’ proposed appointment is a clear demonstration of the commitment to AWE by the Transworld group.”
The deal will give AWE 100% of the shares in the current Tui operator New Zealand Overseas Petroleum (Holdings) Ltd from Transworld together with a minor share of the potential upside from the Tui project and the Hector South sub-block.
NZOP will continue to operate Tui PMP 38158 but as a subsidiary of AWE.
The acquisition is subject to completion of a related transaction, whereby Transworld will sell a further 22.5% interest in PMP 38158 and the Hector South sub-block to an un-named third party for a comparable value.
AWE said the purchase would increase proved and probable oil reserves and its exploration acreage in a cornerstone asset area.
Mr Philips said the purchase was a large step forward in AWE's evolution as an oil and gas producer.
