SOURCE: Target Energy

Target Energy

December 03, 2014 11:09 ET

Target Energy Appoints Divestment Advisor

WEST PERTH, AUSTRALIA--(Marketwired - December 03, 2014) - US-focused oil and gas producer Target Energy Limited ("Target") (OTCQX: TEXQY) (ASX: TEX) is pleased to advise that in accordance with its previously stated strategy, it has agreed with its partners on the appointment of Scotia Waterous as adviser to the divestment of the Fairway Project ("Fairway") in the Permian Basin, Texas.

Scotia Waterous will work with Target and its partners over the coming months to assemble a data room, market Fairway and negotiate with counterparties with the aim of divesting Fairway in early 2015.

M&A activity in the Permian Basin has been very strong in 2014. Target believes that with this divestment it can unlock shareholder value that is currently not reflected in its share price.

About Scotia Waterous

  • A division of the Scotiabank Group, a premier financial institution among the top ten largest banks in North America and among the top twenty globally.
  • Completed 190 E&P M&A transactions valued at over $156 billion since 2006.
  • Advised on some of the most recent significant transactions in the Eagle Ford, U.S. Bakken, Mid-Continent, and Gulf of Mexico.
  • Acted as exclusive advisor on four of the top ten largest transactions in North America in 2014.
  • Advised on three of the top five largest transactions ever announced in the Eagle Ford by value -- including the recent C$2.8 billion purchase of Aurora Oil and Gas by Baytex Energy Corp.

Target's Managing Director, Laurence Roe, commented: "We are very pleased to appoint an organisation of such high calibre as Scotia Waterous as Divestment Advisor for our Fairway asset. Their commitment, expertise and strong track record in the oil and gas M&A sector -- particularly in Texas -- will ensure that the planned Fairway divestment will capture the full value of the asset.

"On completion of the sale, Target will use the funds to retire debt, return a meaningful portion to our shareholders and deploy the balance into new projects." 

Laurence Roe
Managing Director

NOTE: In accordance with ASX Listing Rules, any hydrocarbon reserves and/or drilling update information in this report has been reviewed and signed off by Mr. Laurence Roe, B Sc, Managing Director of Target Energy, who is a member of the Society of Exploration Geophysicists and has over 30 years' experience in the sector. He consents to that information in the form and context in which it appears. Note also that Target reports a thermal equivalent when combining gas and oil production, where 1BOE = 6 mcf.

Contact Information

  • CONTACT INFORMATION:

    USA
    Bradley Holmes
    Target Investor Relations (Houston)
    +1 713 304 6962 cell
    +1 713 654 4009 direct

    Laurence Roe
    Target Energy
    +1 713 275 9800 direct

    Australia
    Ross Dinsdale
    Business Development Manager (Perth)
    +61 429 702 970 cell
    +61 8 9476 9000 direct