AWE will sell a share of its interest in the Bass Basin to Toyota Tsusho Gas for $80.125 million and will pass on a 5 cent per share dividend to its shareholders, the company announced today.
AWE, who were advised by West-Perth based Miro Advisers, has agreed to sell an 11.25 per cent interest in T/L1 and a 2.75 per cent interest in T/18P.
The company said the transaction will reduce the risk-exposure to the capital expenditure requirements for the BassGas Mid-Life Enhancement project, and will leave the company in a strong cash position.
The 5 cent fully franked dividend utilises the company’s remaining franking credits, according to AWE, and will be paid on 20 January, 2012.
AWE managing director Bruce Clement said the sale reflected the strength and quality of the Bass Basin portfolio.
“The company made a decision to reduce its equity interest in the Bass Basin to manage near term capital requirements, to better balance its asset portfolio, and to free up capital for investment in future growth projects,” he said.
“The immediate payment of a 5 cent per share full franked Special Dividend will be important to many investors in what have been difficult recent global economic times.”
AWE shares were up 5.5 cents to $1.45 at 3pm WST.
