(Alliance News) - Attis Oil & Gas Ltd on Friday announced it is selling its Austen field assets to Esparza Energy Holdings LLC because it is not producing enough surplus cash to re-invest in new assets.
The assets are to be sold by the North American-based oil & gas exploration company for USD200,000. The fee will be payable in monthly installments equal to 50% of the revenue generated from the assets' oil and gas production. A three-year deadline has been set for the payment.
The assets made an operating profit of USD17,043 for the six months ended June 30. Their book value was USD742,000 at the end of the same period.
Attis Oil & Gas will no longer own, control or conduct any of its existing trading business, activities or assets on completion of the disposal. This means the company will become a cash shell and will have six months to make an acquisition before it is suspended from trading on the alternative investment market.
Mayan Energy USA, an Attis Oil & Gas subsidiary, will maintain a security interest in the security of and production from the wells until the amount has been paid.
Attis Oil & Gas plans to use the freed up cash and management time in the pursuit of other more lucrative opportunities.
Attis Oil & Gas shares were up 4.1% at 0.011 pence on Friday afternoon in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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