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G5/43 (Gulf of Thailand, Oil)

The Asset

  • Largest oil producing block offshore Thailand
  • Located in the proven Songkhla basin with other operators in the basin including Chevron, Kris Energy, Ophir Energy and Mubadala
  • 120 mmbbl of 2P reserves
  • First production in 2008 and forecasted to produce for 30 more years based on Coastal Energy’s RPS reserves report
  • Material development and exploration upside
  • Operated by Coastal Energy who own 100% of the Block

The Counterparty (Coastal Energy)

  • US$2.1bn market capitalisation as of 25th October 2013 when FlowStream acquired the royalties
  • Block G5/43 was 80% plus of Coastal Energy’s NAV based on broker NAVs
  • Coastal Energy team had discovered the fields on the Block and developed them through to production
  • Reflecting the company’s success, CEPSA announced the purchase of Coastal Energy for US$2.2bn in November 2013

The Deal

  • FlowStream acquired two existing royalties on G5/43 from two different parties
  • One royalty entitled FlowStream to 2.5% of the net profits of G5/43
  • The other royalty entitled FlowStream to 1.0% of the net profits of G5/43

More Information

  • Notwithstanding FlowStream’s desire to invest in streams and royalties for life-of-field, on the request of Coastal Energy, FlowStream agreed in 2013 to sell both of the net profit interests to Coastal Energy as part of the CEPSA acquisition of Coastal Energy
  • For more information about G5/43, please visit Coastal’s website at http://www.coastalenergy.com