Nexen (NXY) Closes $700M B.C. Shale Gas Asset Sale
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Nexen Inc. (NYSE: NXY) has completed the previously announced sale of a 40% interest in its northeast British Columbia shale gas assets to a consortium led by INPEX CORPORATION of Japan. The total consideration for the sale is $700 million, with 50% cash and a 50% capital carry, effective July 1, 2011.
With the deal closed, Nexen now holds a 60% operated interest in the joint venture lands, which are located in the Horn River, Cordova and Liard basins of northeast BC. The remaining 40% is now owned by INPEX Gas British Columbia Ltd. (IGBC), which is jointly established by INPEX and JGC Corporation.
Upon closing, we receive $821 million in cash, comprised of the initial cash payment and IGBC's share of costs since the effective date of the transaction, including reimbursement of their 40% share of capital and payment of capital carry on our 60% share. The remaining carry amount is approximately $106 million. We expect to record a gain on the sale in our third quarter financial results.
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With the deal closed, Nexen now holds a 60% operated interest in the joint venture lands, which are located in the Horn River, Cordova and Liard basins of northeast BC. The remaining 40% is now owned by INPEX Gas British Columbia Ltd. (IGBC), which is jointly established by INPEX and JGC Corporation.
Upon closing, we receive $821 million in cash, comprised of the initial cash payment and IGBC's share of costs since the effective date of the transaction, including reimbursement of their 40% share of capital and payment of capital carry on our 60% share. The remaining carry amount is approximately $106 million. We expect to record a gain on the sale in our third quarter financial results.
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