Seahawk Sells Oil Interest for $1.1 Million

Calling it the most significant deal in the company’s six-year history, Seahawk Oil International Inc. of Newport Beach Wednesday announced the sale of part of its interest in a 5-million-acre New Zealand offshore oil field for $1.1 million cash.

However, Seahawk retained a small interest in the offshore oil field and signed a royalty agreement that could be worth millions of dollars if a substantial amount of oil is discovered.

“If we make a commercial discovery of 240 million barrels of oil, at present-day value, our share would be worth $20 million,” said Robert Friedenberg, Seahawk chairman and president.

Seahawk’s Australian subsidiary sold 4.93% of its 6.71% interest in the New Zealand oil field to Amoco New Zealand Exploration Co., a subsidiary of Amoco Production Co., which is a unit of Standard Oil of Indiana. In all, Amoco acquired a 22.3% working interest in the New Zealand oil field by paying about $5 million to Seahawk and to five other oil companies.

Seahawk retains a 1.78% working interest in the New Zealand field, plus a royalty of .173%. The offshore field is in the Solander Basin off the southern tip of the South Island of New Zealand.

Seahawk recently negotiated a deal with British Petroleum Oil Exploration New Zealand Ltd. for British Petroleum to drill the offshore wells.

Seahawk has oil and gas production wells in California, Texas, Kansas, Louisiana, Colorado and Oklahoma. Friedenberg said the company’s wells produce about 300 barrels of oil a day. Seahawk also is involved in oil exploration in Australia.

For the nine months ended Sept. 30, 1984, the company posted net income of $284,000 on $2.2 million in revenues from oil and gas sales, compared to the $58,000 net income on revenues of $1 million in 1983. Fourth quarter and year-end figures have not been released.