Cue cancels Saga deal

Thu, 16 Apr 1998 | Source: REUTERS

OSLO (Reuters): Saga Petroleum ASA said yesterday that Cue Energy Resources NL of New Zealand had pulled out of a deal to buy Saga's 50 percent stake in the Jambi Merang oil prospect in Indonesia.

Saga said it disputed Cue Energy's right to withdraw from the agreement and was considering legal action.

Cue agreed in May to buy Saga's stake in the block for US$27 million.

Saga said that outside of the sales price, accrued investments and operating costs amounted to an additional $10 million.

"Cue has paid a non-refundable deposit of $5 million, and accordingly, the total amount due to Saga is $32 million," Norway's largest listed oil company said in a statement.

The net book value of Saga's interest in the Jambi Merang block is $22 million.

View JSON | Print