Energy company Arrow Energy Ltd
(ASX:AOE) says Shell CSG has decided to exercise its right to take up a share of the Tipton West assets recently Acquired by Arrow Energy from Beach Petroleum.
Arrow says Shell will pay the company $99 million for a 12 per cent stake in the Tipton West joint venture and in addition will also reimburse Arrow for 30 per cent of any contingent payments that Arrow makes to Beach up to $21 million.
On completion of the transaction, ownership of the Tipton West joint venture will be 70 per cent Arrow and 30 per cent Shell.
Arrow says the deal is subject to corporate, third party and regulatory approvals.
Arrow Energy has posted net profits in the last two years after losses the three years previous.
