AGL has announced write downs of $435 million as it moves toward being a coal free energy company

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AGL has announced write downs of $435 million on its gas assets and further sales including the Hunter coal seam gas project.

The energy producer and retailer is moving toward a fossil fuel free business and won’t be building any more coal fired power stations.

Part of this process includes a forecast $1 billion in asset sales and cost cuts of $200 million.

AGL says there is significant coal seam gas in the Hunter region but current regulations make the resource uneconomic to develop.

In May, AGL sold back a licence to explore for coal seam gas on the New South Wales central coast to the state government, deeming it not commercially viable.

The company reconfirmed that 2015 financial year underlying profit is expected to be in the top half of the guidance range of $575 million to $635 million.

After a review, the core projects to be retained include the Camden Gas Project, Gloucester Gas Project, Silver Springs underground storage facility and the Wallumbilla Liquefied Petroleum Gas plant.

The write downs include $193 million on the value of the Gloucester Gas Project.

The sale of Cooper Oil is underway and is expected to result in a loss of about $7 million .

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