07/07/2014 - 10:11

Fresh $US300m offer for Antares assets

07/07/2014 - 10:11

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Perth-based oil and gas company Antares Energy has received a fresh $US300 million offer from an undisclosed party for its Permian Basin oil and gas assets in Texas, less than six months after it backed out of a previous sale agreement.

Fresh $US300m offer for Antares assets
Antares' Northern Star project in Texas.

Perth-based oil and gas company Antares Energy has received a fresh $US300 million offer from an undisclosed party for its Permian Basin oil and gas assets in Texas, less than six months after it backed out of a previous sale agreement.

Antares chief executive officer James Cruickshank said the offer was unsolicited, but he would nevertheless travel to the US to meet with the potential buyer and evaluate the offer.

The assets include the Southern Star, which Antares bought in 2011 for $US61 million, Northern Star and Big Star projects, all located in West Texas.

Antares had made arrangements to sell its Permian assets in August last year for the same price but withdrew from the sale in February, saying it would benefit shareholders to develop the assets rather than sell them.

The Permian Basin is becoming one of the most sought after oil provinces in the US, with international giants BHP Billliton, Apache Energy, Chevron, Exxon Mobile, among others, holding significant projects.

Projects in the basin produce an estimated 1.3mmboe of oil each day.

In June, Antares announced plans to raise $19.5 million through the placement of 9.75 million convertible notes at an issue price of $2 per note, which would be used for further development of the Permian projects.

Antares shares closed trade today up 9.5 per cent, at 58.5 cents.

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