AGL flags $1b asset sale

AGL Energy Chief Executive Andy Vesey.

AGL Energy Chief Executive Andy Vesey.

AGL Energy is planning on offloading around $A1 billion in non-strategic and under-performing assets by the end of the 2016–17 financial year, while also targeting working capital reductions of around $A200 million.

The move overlaps with an operational review of upstream business currently being undertaken by AGL.

Additionally, the company is continuing to assess its proposed Gloucester Gas Project, with proposals from potential suppliers currently being received and reviewed.

AGL told investors that once the four Waukivory Pilot wells have been restarted, approximately six months’ of flow testing will be required before being able to make a final investment decision on the project.

In the meantime, the company is continuing to evaluate development costs and expected gas recovery.

AGL voluntarily suspended its Waukivory Pilot Project in January, following the detection of naturally occurring BTEX in flowback water samples.

The pilot project forms part of AGL’s proposed Gloucester Gas Project, situated in PEL 285, which will include a central processing facility, a gas transmission pipeline, and a gas delivery station to be located at Hexham.

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