BANPU Amends on Purchase Agreement of Barnett Shale Asset in USA to ฿18.7bn

Banpu Public Company Limited (BANPU) announced that an affiliate of Banpu North America Corporation (BNAC), has entered into an amended terms on Purchase and Sale Agreement (PSA) to acquire a gas operatorship position in the Barnett shale, USA with acquisition price of $570 million (approximately ฿18,650 million) and contingent payments of up to $260 million in an aggregate over 4 years starting from 1st January 2021- 31st December 2024. The contingent payment based upon future commodity prices, beginning at either a $2.75 per MMbtu Henry Hub gas price or a $50 per barrel West Texas Intermediate oil price on annual average basis.

With the amended terms, $170 million deposit will be paid in cash, in which $70 million was paid since December 2019 and $100 million will be paid on 30th April 2020, and the scheduled closing date for the transaction is extended from 2nd quarter of 2020 to 31st December 2020. The closing payment is subject to customary purchase price adjustments and the cash flow from operation of Barnett Shale since 1st September 2019 is belong to BANPU and will be deducted from investment value upon the closing date of transaction.