News

Geodynamics secures sale of drilling rig for $21 million

Drilling crew preparing for spudding of Habanero 4, Australia (source: Geodynamics)
Alexander Richter 15 Jun 2012

Australian Geodynamics announces it has sold its driling rig Rig 200 to Pangaea Resources for a cosh consideration of US$21 million to be expected to close in September 2012.

In a release this morning, Australian developer Geodynamics Limited (ASX: GDY), announced that “the joint venture partners have agreed to the sale of Rig 200 to Australianbased company Pangaea Resources Pty Ltd (“Pangaea”) for a total cash consideration of A$21 million (US$21 million).

Under the terms of the agreement the Sale is not due to complete until 30 September 2012. During this period Pangaea may elect to withdraw from the Sale. Pangaea has agreed to pay the joint venture a deposit of A$1 million that will be forfeited should Pangaea elect to withdraw from the Sale.

Geodynamics? Chief Executive Officer, Geoff Ward said, “Geodynamics is very pleased to have secured the sale of this rig in difficult market conditions. The receipt of these funds will bolster and strengthen the company?s balance sheet as part of the capital management initiatives the company has undertaken over the past year, including the sale of Rig 100, the
settlement of the Habanero 3 insurance claim, the successful renegotiation of terms of the Renewable Energy Demonstration Program (REDP) funding grant and the capital raising program undertaken in January.”

Source: Geodynamics release (pdf)