ACL announces acquisition of Tangai-Sukananti KSO
Tuesday, June 14 2016 - 12:58 AM WIB
TSX-listed ACL International Ltd. (ACL) announced Monday that through its subsidiary, ACL has executed a Share Sale Agreement (SSA) with ASX-listed Cooper Energy Limited (COE) to acquire their 38.5 percent working interest in Tangai-Sukananti KSO in Indonesia?s North Sumatera Province.
Cooper Energy is a non-arms length party to ACL. ?The SSA was executed jointly with Lamara Energy Pte. Ltd, a private company, who acquired 16.5 percent. ACL and Lamara shall be designated as the operators of the KSO,? ACL said in a statement.
Under the terms of the SSA, ACL said it shall pay approximately US$3.2 million inclusive of working capital adjustments and outstanding receivables. ACL has paid a deposit of US$130,000 which is refundable under certain terms and conditions. Completion date for the transaction is July 29, 2016. The SSA is subject to regulatory approval, the statement added.
The KSO is currently producing 800 bopd gross; however, ?ACL believes that the KSO has material potential to increase production with minimum capital expenditures. The KSO comprises an area of 18.25 square kilometers.?
Mo Fazil, the CEO of ACL stated that ?We are pleased to acquire stable production in Indonesia which will strengthen our cash flow and provide potential for organic growth. Our partner Lamara Energy brings forth substantial operational experience in Indonesia?.
ACL?s other Indonesian oil and gas assets include (a) 50 percent of Langsa TAC, an offshore field with gross production of 884 bopd; and (b) 38.25 percent in South Block A PSC (SBA), an onshore block located in the North Sumatra Basin, which is one of the most productive hydrocarbon regions in Indonesia with over 80 known oil and gas fields. ACL?s subsidiary Renco Elang Energy Pte. Ltd. is the operator of SBA.
Editing by Reiner Simanjuntak