International Brent crude futures were trading at $34.89 per barrel at 0139 GMT (8:39 p.m. ET), down 40 cents from their last settlement. U.S. West Texas Intermediate (WTI) crude futures were down 21 cents at $32.86.
KUALA LUMPUR: Sona Petroleum Bhd has been able to reduce the proposed purchase price of Australia’s Stag Oilfield by half to US$25mil (RM103.2mil) instead of the US$50mil (RM206.5mil).
It announced on Monday Sona E&P (Perth) Pty Ltd and Sona Petroleum had signed a deed of variation with the sellers to reduce the base purchase price.
“In line with the reduction in base purchase price, GCA has issued an updated fairness opinion dated Feb 29, 2016, which considers the base purchase price of US$25mil to be fair,” it said.
Sona Petroleum, which is a special-purpose acquisition company had been negotiating on the value of its proposed acquisition of the Stag oilfield, after independent valuers deemed the transaction unfairly priced.
Recall that a report from the independent technical and asset valuation expert Gaffney, Cline & Associates (GCA) said that the purchase consideration being paid by Sona was not fair, due to the current low oil price.
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