Sona’s agreement with Stag Oilfield sellers terminated

Generic photo of a person looking at Sona Petroleum's latest annual report. Sona Petroleum Bhd has received the Securities Commission’s conditional approval to acquire the Stag Oilfield offshore Western Australia.

KUALA LUMPUR: Sona Petroleum Bhd, whose shareholders on April 26 voted against the proposed purchase of the Stag Oilfield in Australia, has been notified that the sellers - Santos Offshore Pty Ltd and Quadrant Northwest Pty Ltd - have terminated the sale and purchase agreement (SPA) with immediate effect.

The special purpose acquisition company, which has until end-July to complete a qualifying acquisition (QA) or risk being delisted, told Bursa Malaysia that the agreement was therefore terminated from June 2.

Sona had earlier sought to buy 100% interest (plus operatorship) in the Stag Oilfield, an offshore Western Australia oilfield which was already producing oil at the rate of 4,600 barrels per day as at June 2015, for US$25mil (RM104mil).

One of the conditions precedent to complete the SPA is getting the approval of Sona’s shareholders for the proposed acquisition.

Sona’s shareholders had on March 30 adjourned its EGM that was supposed to decide on its proposed QA.

In April, prior to the adjourned EGM, the company proposed a revised capital repayment to reward its shareholders should the QA be approved. under the revised plan from the management team, The proposed cash distribution had been fixed at 8 sen per share compared with 0 to 7.1 sen previously.

Despite the sweetened deal, 77.39% of the total number of votes cast at the adjourned EGM on April 26 were against the proposed acquisition.

Sona has until July 31 to make its QA, as the permitted timeframe would end 36 months after the date of listing.