Malaysia-based Sona Petroleum Bhd is eying more acquisition opportunities in the oil sector of Western Australia. The company is already in the process of taking over Stag Oilfield in WA and is awaiting shareholders approval.
“We may consider purchasing those assets,” Sona managing director Datuk Seri Hadian Hashim told the media after his visit to the Stag Oilfield, reports The Star.
Hadian said it has an interest in bidding for more energy assets in the region which are being disposed off by Santos Ltd.
In November 2015, Sona proposed 100 percent stake acquisition in Stag Oilfield owned by Quadrant Northwest Pty Ltd and Santos Offshore Pty Ltd for US$50millon.
However, later it halved the price to US$25million following independent valuation. Shareholders also expressed reservations at the deal at an EGM and the meeting had to be adjourned.
Hadian said he was confident that shareholders will approve the purchase of Stag Oil Field at the forthcoming EGM on April 26.
Sona expects Stag to deliver higher technical capabilities and more credibility for operating worldwide. It revalued Stag’s assets in the light of low oil price and changing operating cost environment.
“Our cost of production of US$30 per barrel is a reasonable margin below the current Brent crude price, even before pricing in the premium over Brent given Stag Oilfields higher quality oil,” said Sona Petroleum Australia managing director Mark Robertson.
He said there is scope for more cost optimisation and it will be developing more assets to reduce cost by another 20 percent.
On future plans, Robertson said he did not want the company to “grow too big too quickly.”
“First, we want to ensure safe operations of our QA. After that, we will look at other opportunities.”
However, there is concern among industry observers that Stag is located 60km offshore Dampier – a field considered “mature.” The Oilfield currently produces 4,000 barrels of oil per day (b/d). The oil field in the Carnarvon Basin is at a water depth of around 50 meters and some 60 kilometers offshore.
“We’d like to get 10 more years from Stag, but it will all depend on the reserves. If we can get 20, 30 years, that would be fantastic,” said Robertson.
Bloomberg data says Sona Petroleum is a special purpose acquisition company and has been taking over operating companies in the oil and gas industry.