Pacific Announces Agreement to Sell Interest in Karoon Blocks

Pacific Exploration and Production has reached an agreement with Karoon Gas Australia (ASX:KAR) to sell its 35 percent working interest in the following concession agreements of the “Karoon Blocks” in Brazil.
According to the press release:

The Company will receive from Karoon U.S.$15.5 million in cash as consideration on closing for its interests in the Karoon Blocks. In addition, the Company may receive a subsequent payment of U.S.$ 5 Million on commercial production reaching 1 Million barrels of oil (or oil equivalents).
“We are pleased to announce this sale, which will improve our cash position, decrease our exploratory commitments and provide additional flexibility,” commented Dennis Mills, Chair of the Independent Committee of the Board of Directors. “This transaction is aligned with the long-term interests of the Company which is to improve liquidity and best positions the Company to navigate the current oil price environment.”
The Agreement remains conditional upon, among other things, approval from the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (‘ANP’) and an approval order from the Superior Court of Justice in Ontario.

Click here for the full press release.