ACL clarifies statement on acquisition of asset in RI

Canada?s ACL International Ltd. issued this press release on Wednesday for the purposes of clarifying its press release issued on June 13, 2016. ACL said that its wholly owned subsidiary, Bow Energy International Holdings Inc., and Lamara Energy Pte. Ltd., a Singapore based oil and gas company, have executed a Share Sale Agreement (SSA) with ASX-listed Cooper Energy Limited to acquire its 55 percent interest in Tangai-Sukananti KSO (KSO), in Indonesia?s North Sumatra Province.

The earlier press statement among others misstated the size of shares to be acquired at 38.5 percent.

Cooper Energy is a non-arms length party to ACL. ACL and Lamara will acquire 100 percent of the shares of Cooper Energy Sukananti Limited (CESL) which operates the KSO. Specifically, ACL will acquire 70 percent of the shares and Lamara will acquire the balance of 30 percent of the shares in CESL.

Under the terms of the SSA, ACL shall pay its proportionate share of approximately US$3.0 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 scheduled for 29 July 2016. The SSA is subject to regulatory approval.

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.

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. (REE) is the operator of SBA.

As per ACL?s press release on May 18, 2016, REE received regulatory approval to drill the Amanah Timur #1 well (?AT1?) before November 30th 2016. REE has commenced preparations and expects to meet the timelines approved the the regulator.

Editing by Reiner Simanjuntak