Australia's AWE says has cash for more acquisitions
PERTH, Nov 27 (Reuters) - Oil and gas producer Australian Worldwide Exploration Ltd (AWE.AX)(AWE) has balance sheet strength to pursue further acquisition opportunities in Australia and New Zealand, the company said on Thursday.
AWE, which acquired junior oil producer Arc Energy Ltd in August, said it had about A$400 million ($261 million) cash on hand and was interested in either acquiring stakes in projects or in companies.
"We're very interested in buying into undeveloped projects ... and we're also interested in companies holding those assets if that's the most appropriate method of entry," Chief Executive Officer Bruce Wood told a media briefing after the firm's annual general meeting.
Wood declined to identify targets but local media reports have said that AWE may be interested in acquiring unlisted Coogee Resources, which put itself up for sale following the exit of 37 percent shareholder Babcock & Brown Ltd BNB.AX.
Shares in AWE, a mid-tier producer in Australia, rose 8 percent to A$2.29 by 0358 GMT. The stock has lost about half its value since striking a peak of A$4.71 a share in May, hit by the global financial crisis and a tumble in oil prices.
Noting that a recent tumble in its share price could make AWE a takeover target, Wood said the firm would look at any offers.
"We have always been a target and there would probably be a bigger fish eyeing us up. If such an approach was to happen, we would look at it and see if it gives value to shareholders," he said.
AWE said it would pay a fully franked, or tax paid, special dividend of 10 Australian cents per share -- amounting to A$52 million ($34 million) -- because of franking credits acquired under the merger with Arc and also to reward shareholders after a strong performance at its Tui oil field in New Zealand last year.
AWE forecast production volumes this financial year ending June 30 to remain close to the record levels of 9.9 million barrels of oil equivalent (boe) it achieved in 2007/08. (Reporting by Fayen Wong)
