Oil and gas producer Santos Limited (ASX: STO) completed the sale of non-core Asian assets to Ophir Energy Plc at the sale price of US $221 million. The completion comes after the announcement made on 3 May 2018 stating the sale of the company’s late-life non-core Asian portfolio to LSE listed oil and gas explorer Ophir Energy Plc.
On the sale completion, Santos has received cash proceeds of US$144 million after making standard adjustments in the sale price. However, as stated previously the company’s sees this sale as an exit from Vietnam, Indonesia, Malaysia, and Bangladesh.
In the media release to ASX, Santos stated that with the strong free cash flows the company has reduced the net debt by approximately US $2.2 billion as at 31 August 2018 and it would be further reduced to reach the target of US $2 billion net debt by October, driven by Asia sale proceeds received in September.
Following the softening of oil and gas market in US, S&P/ASX 200 Energy index fell 1.84% to $11,357.50 on 7 September 2018 (1:09 PM AEST). But to the good news to energy sector, it has been heard that Saudi Arabia is aiming to surge the oil prices with the benchmark crude price hovering between US$70 and US$80 a barrel.
Witnessing existing slump in energy sector, Santos’ share price dropped by 2.24% to $6.540 on 7 September 2018 (1:09 PM AEST). There has been performance change of +71.54% over the last 12 months.
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