OilVoice - Maple Energy Announces Sale of Interest in Aguaytia Energy

Maple Energy Announces Sale of Interest in Aguaytia Energy

Thursday, June 11, 2009

Maple Energy plc, an AIM listed energy company with assets in Peru, announces that one of its partially-owned subsidiaries, The Maple Gas Development Corporation ("MGDC"), has successfully completed the sale of all of its interests in Aguaytia Energy, LLC ("Aguaytia Energy") to an affiliate of Duke Energy Corporation ("Duke") for US$28 million (the "Aguaytia Sale"). Aguaytia Energy is the owner of all of the rights and interests in the Aguaytia Project, an integrated natural gas and electric power generation and transmission project in Peru.

Concurrent with the completion of the Aguaytia Sale, Maple also entered into a participation agreement (the "Participation Agreement") with an affiliate of Duke in relation to the hydrocarbon rights located below the currently producing Cushabatay sand formation in Block 31-C (the "Aguaytia Deep Interest").

Maple will receive approximately US$21.6 million, in cash, as consideration for its pro-rata beneficial interest in Aguaytia Energy, held through MGDC. The minority shareholder of MGDC will receive the remaining amount of approximately US$6.4 million of consideration paid in connection with the Aguaytia Sale. Under the terms of the purchase and sale agreement governing the Aguaytia Sale, MGDC will also retain certain rights to contingent payments, of up to an additional US$7 million in consideration, and certain liabilities, which are not expected to be material. These contingent payments and liabilities are also subject to Maple's pro rata interest in Aguaytia Energy, held through MGDC.

Following its entry into the Participation Agreement, Maple will continue to possess certain rights over the Aguaytia Deep Interest. The Participation Agreement enables Maple to maintain a 33.77% beneficial interest in the rights to the hydrocarbons that are discovered or produced from the Aguaytia Deep Interest, while assuming responsibility for 33.77% of the costs associated with the exploration and exploitation of these prospective rights.

Notwithstanding its divestment of interests in Aguaytia Energy through the Aguaytia Sale, Maple will continue to serve as the operator of the gas related assets of the Aguaytia Project. These services are provided pursuant to an existing services agreement between Aguaytia Energy and one of Maple's affiliates and will continue for a period of up to nine months from the date of closing of the Aguaytia Sale, unless earlier terminated by Duke.

For the year ended 31 December 2008, Maple recognised a loss of US$0.073 million from its ownership in Aguaytia Energy.

The Company intends to use the net proceeds from the Aguaytia Sale to: (i) fund a portion of the equity contribution required for its ongoing ethanol project; (ii) repay outstanding indebtedness; and (iii) general corporate purposes.

Rex Canon, CEO of Maple Energy, commented today:
"I am pleased to announce the sale of our interest in Aguaytia Energy, which monetises an asset for our shareholders while enabling us to retain exposure to the attractive Aguaytia Deep prospect. In addition, the completion of this transaction will strengthen our balance sheet, increase our flexibility, and enable us to concentrate on progressing the exciting Ethanol Project, and our drilling operations on Block 31-E and the Maquia and Agua Caliente oil fields. These core areas of operation remain our priorities for the year ahead, as we continue to develop our assets in Peru."

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