Liquefied Natural Gas Limited (LNG) has executed a conditional heads of agreement with Arrow Energy Limited to sell the entire Fisherman's Landing liquefied natural gas project (Gladstone LNG Project) through the sale of LNG's 100% owned subsidiary Gladstone LNG Pty., Ltd. for a combination of cash, milestone payments, royalties and Arrow options. The total transaction is valued at approximately AUD45 million ($39.4 million). All the companies are based in Australia.
Arrow Energy is an integrated energy company focused on the development of coal seam gas. LNG is engaged in the production and sale of liquefied natural gas in Australia.
The consideration will consist of $10 million licensing fee for Arrow's use of LNG's OSMR(R) technology for the first LNG train, with $5 million to be paid by Arrow to LNG Ltd by February 28, 2010 and a further $5 million payable at notice of readiness to proceed to construction of the first LNG train. An additional $10 million license fee is payable for each additional LNG train developed at the project site using the OSMR(R) technology.
Deal Value (US$ Million) 39.4
Deal Type Acquisition
Sub-Category 100% Acquisition
Deal Status Announced: 2010-02-11
Deal Participants
Target (Company) Gladstone LNG Pty., Ltd.
Acquirer (Company) Arrow Energy Limited
Vendor (Company) Liquefied Natural Gas Limited
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