Carnarvon Petroleum Limited has entered into a Sale and Purchase Agreement (SPA) to divest half of its 40% interest in the Thailand concessions L44/43, L33/43 and SW1A (Thai assets).

Carnarvon has agreed to sell half o1f its 40% interest in its Thai assets for US$65 million (~A$72 million1) with US$33 million (~A$36.5 million1) to be paid on completion and up to US$32 million (~A$35.5 million1) to be paid annually at the rate of 12% of the buyer's future revenue, to a limit of US$10 million per annum. The above amounts include working capital adjustments.

The sale strengthens Carnarvon's balance sheet, with cash forecast to exceed A$50 million upon completion, in reparation for funding future North West Shelf exploration and appraisal activities that will follow a successful outcome from the high impact Phoenix South-1 well (expected to spud in the June 2014 quarter).

Tags: Carnarvon Petroleum Limited