Chinook Energy has entered into an agreement to sell all of its Tunisian assets for $127.7 million to MedcoEnergi. The consideration includes positive working capital of approximately $13.7 million.
The assets comprise four exploration areas, two development areas and two production areas. Five onshore blocks (Adam, Sud Remada, Bir Ben Tartar, Jenein and Borj El Khadra) are located in the Ghadames Basin, while the remaining three offshore blocks (Cosmos, Hammamet and Yasmin) are located in the Pelagian Basin off Tunisia.
· Q1-2014 production of 1.8 MBOE/d
· 1P reserves of 4.8 MMBOE
· 2P reserves of 8.1 MMBOE (84% light oil)
Upon completion of the acquisition, MedcoEnergi anticipates adding 2P reserves and production of 12.3 MMBOE and 2.8 MBOE/D, respectively.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.