Sale of US & Cooper Basin Assets

New Standard Energy Limited has reached an agreement with Sundance Energy Ltd  for the sale to Sundance of New Standard’s United States and Cooper Basin assets for total consideration of approximately A$24M.

Under the Share and Asset Sale Agreement signed with Sundance, Sundance will directly acquire New Standard’s Colorado County Project in the US and will indirectly acquire its Atascosa Project and interest in Cooper Basin permit PEL 570 through the purchase of New Standard’s relevant subsidiaries, inclusive of their associated assets and liabilities.

The transaction will eliminate all New Standard debt and provide sufficient ongoing liquidity to allow the Company to explore options for future development of its Western Australian onshore assets.

New Standard Energy Chairman Arthur Dixon said the Company’s growth plans and focus on the US have clearly been impacted by the speed and intensity of the collapse in global oil prices which has affected companies of all sizes across all continents.

“The Board recognised the significance of the changed commercial environment and late in 2014 initiated an extensive and intense process to seek and evaluate corporate transactions, joint ventures and asset
sales or swaps for all of the Company’s assets. In tandem, we slashed our corporate costs and sought out corporate and asset opportunities that would enable New Standard to completely unwind our debt
position and future liabilities, while providing some capital to sustain the company and retain its remaining asset portfolio,” Mr Dixon said.