The Directors of Arrow Energy Limited (AOE) are pleased to advise that Arrow has completed the sale of 12% of its interests in the Tipton West Joint Venture to Shell CSG (Australia) Pty Ltd subject to regulatory and third party approvals. Shell has paid Arrow A$49.5 million, being 50% of the purchase price of A$99 million, to obtain a further 12% of the Tipton West Joint Venture, with the balance payable following receipt of third party consents and regulatory approval. In addition to the payment of $99 million, Shell will also reimburse Arrow for 30% of any future contingent payments (up to $21 million) that Arrow makes to Beach Petroleum Ltd. under the terms of the Arrow/Beach Tipton West sale agreement. Following the completion of the transaction, ownership of the Tipton West Joint Venture is 70% Arrow and 30% Shell.
Arrow Energy CEO (Australia) Shaun Scott said “We welcome Shell’s further participation in the Tipton West Joint Venture. The completion of this sale marks another step in the continuing joint venture between Arrow and Shell as we refine our field and LNG development plans.”
