SYDNEY (AP) - Petsec Energy says it is selling its China operations to free up cash to invest in U.S. exploration, including extracting shale oil.
The Sydney-based company said in a statement Thursday that it sold its Chinese subsidiary, Petsec Petroleum, to Horizon Oil for 38 million Australian dollars ($41 million).
Petsec plans to use the proceeds of the sale and profits from its U.S. natural gas operations to further develop its shale oil exploration as well as traditional drilling in the Gulf of Mexico off Louisiana and Texas.
Chairman Terry Fern said the company wants to shift its focus away from natural gas because an abundance is driving prices down in the U.S. Shale oil is extracted from rock deposits and is found in the western U.S.