Valeura Energy Inc - natural gas producer - Inks agreement to sell its shallow conventional gas business to TBNG Ltd for USD18 million, comprising a cash payment of USD15.5 million, plus royalty payments of up to USD2.5 million.
Deal is subject to terminations rights and regulatory approvals, and Valeura expects to close the deal in the first quarter of 2021. Proceeds from deal will go towards bolstering Valeura's net cash position, which was USD31 million at the end of September.
"I am pleased to announce the pending sale of our mature, conventional gas business as a way to strengthen our balance sheet and increase our cash to pursue higher-value growth opportunities. Our objective has been to maximise the value of these mature assets, and today's monetisation agreement is a key step towards accomplishing that goal. We have re-tooled Valeura into a lean, shrewd, debt-free machine, focused on value growth," said Chief Executive Officer Sean Guest.
Current stock price: 23.00 pence
Year-to-date change: down 35%
By Dayo Laniyan; dayolaniyan@alliancenews.com
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