Linc Hires Advisers for U.S. Oil Asset Sale or Partnership DealJames Paton
Linc Energy Ltd. hired two banks to help bring in a partner or sell oil assets in Alaska and Wyoming as it looks at potentially expanding in the U.S. Gulf coast region, according to its chief executive officer.
“We’re in active discussions with a number of groups, particularly around our Alaskan project,” Craig Ricato, CEO of Brisbane-based Linc, said today by phone, declining to name the financial advisers. The company is targeting a decision within the current half, he said.
Linc, which said in September that it received unsolicited approaches for its oil assets in Alaska and Wyoming, has allowed companies into its data room, Ricato said. The company, whose shares trade in Singapore, also has oil fields in Texas and Louisiana and shale operations in Australia.
The decline in oil prices has hurt companies including Linc, forcing the industry to cut more than $40 billion in spending and lower the value of their assets. Linc last week announced writedowns of about A$118 million ($92 million).
With the oil downturn, Linc is “looking for opportunities” in the Gulf Coast, Ricato said. “This market is challenging, but there are also opportunities it presents.”
The company sold its coal business to United Mining Group for A$5 million, Linc said today. The book value of the assets, including liabilities, was A$29.7 million at the end of 2014, it said. As part of a revenue-sharing accord, Linc said it also may earn about $590 million in future coal sales from the assets.