Otto Energy Ltd. has completed the sale of Galoc Production Company W.L.L. (GPC) to Nido Petroleum Ltd (Nido) has completed.
Final proceeds were received from Nido Feb. 17.
Cash reserves following completion are as follows:
•Cash as at Feb. 13: $28.6 million
•Final proceeds from Nido: $77.4 million
•Total: ~$106 million (~AUD 136 million)
The final proceeds from Nido reflect adjustments from the effective date of the transaction, being July 1, 2014.
The Board of Otto intends to increase the proposed capital return to shareholders to $0.0499 (AUD 0.064) per share (previously $0.0468 or AUD 0.06 per share), which would utilize $57.6 million (AUD 73.9 million) of Otto’s cash reserves.
Otto is seeking a class ruling from the ATO to confirm the taxation treatment of the proposed capital return.