Antares surges on Permian assets sale
You can purchase access to this special report or subscribe to Business News.
Subscribe to Business News.
Oil and gas company Antares Energy has sold its two remaining assets in the Permian Basin in Texas to an undisclosed private equity buyer, for about $US250 million ($A360 million).
Antares has reached two agreements with a single purchaser for the sale of its Northern Star project for $US148.8 million and its Big Star project for $US105.1 million.
The news sent Antares shares skyrocketing, up 22.5 cents to 31.5 cents.
“This represents another step forward in our Permian portfolio strategy of creating, developing, producing and realising value from our project assets,” chief executive James Cruickshank said.
“We look forward to closing both of these transactions.”
The sale is expected to be closed by November 30.
Antares first tried to sell off its Permian assets in 2013 to an undisclosed party for about $US300 million (including the Southern Star project, which Antares owned at the time); however it backed out of the agreement in February last year.
That July, the company received another $US300 million offer for the three Permian assets from an undisclosed buyer, but by October it was revealed that the company had only managed to sell off its Southern Star project to US-based Breitburn Energy Partners for a $152 million cash and share package.