The Management Board of Activa Resources has sold its 33 % interest in Rhein Petroleum GmbH and will focus both its manpower and financial resources on its main US producing oil and gas properties with proven reserves. The purchaser is Deutsche Rohstoff AG.

The consideration for the sale comprises the following:

Reimbursement of the corporate investments funded into Rhein Petroleum by Activa Up to EUR 1 million as a variable purchase price element from a 1 % non-cost bearing revenue interest in all future oil and gas prospects on the licences currently held by Rhein Petroleum Release from all funding commitments made to Rhein Petroleum’s project partners and German licensing authorities. Activa retains the ability to participate for 33 % in future Rhein Petroleum drilling prospects on its current licences subject to certain conditions

The reasons for the sale are two-fold. First, the primary trend in the global oil and gas sector in the current economic and pricing environment is towards focussing on O&G prospects with the highest expected investment returns. With this transaction Activa Resources is similarly allocating its resources in the most efficient way by focussing on its US projects which have lower risk profiles and more significant and defined development potential. Only one-quarter of its proven reserves are currently on production. Second, Activa and the other owners of Rhein Petroleum could not reach mutual agreement on the appropriate strategy for the company’s activities.

Activa Resources CEO Leigh A. Hooper on stepping down as Managing Director of Rhein Petroleum: “The Rhein Petroleum licences have geological merit and should create viable growth opportunities. In the current environment, however, Activa cannot support the corporate strategy being pursued by the other partners in the company. We are pleased that a typical oil industry transaction was possible to reduce Activa’s risk exposure.”

Tags: Activa Resources, Rhein Petroleum GmbH