Lochard Energy Group has received the A$2 million first tranche of the earn out payment due from the sale of the fluids business in April this year.

Lochard has also received an additional sum of A$754,422 which represents the final working capital adjustment on the sale. The final earn out payment is subject to EBITDA results for the fluids business for the 12 month period ending 29 February 2012. The maximum residual earn out figure is a further A$19.25 million un-risked (A$11.84million risked as per 30 June 2011 accounts).

Haydn Gardner, Chief Executive Officer of Lochard Energy Group Plc said, "We are pleased to have received the first tranche of the earn out and the final working capital adjustment. This initial payment shows that the business we disposed of continues to track the original budget forecasts and we look forward to updating the market on the final earn out payment in the second quarter 2012. The first tranche of the earn out will be used towards funding our share of the Athena development costs. Athena is due to start oil production later this year."

Tags: Lochard Energy Group