Acquisition of Benakat by Interra postponed

By Ruli Setiawan

SGX-listed Interra Resources Ltd announced on Monday that its subsidiary Goldwater Indonesia Inc. (GII) has agreed to extend the Longstop Date for the acquisition of a controlling ownership in PT Benakat Barat Petroleum (BBP), which owns the Benakat Barat oil field in South Sumatra

GII and the existing owner of BBP agreed to extend the Longstop Date (the date where all conditions have been met) to July 2 from June 2.

Interra announced in September of last year that it had signed Sales and Purchasing Agreement (SPA) to acquire the shares for US$78.5 million but had until June 2, 2014 to fulfill all conditions for the acquisition.

?GII and the Sellers have agreed to extend the Longstop Date to 2 July 2014, subject to the right for parties to terminate the SPA with 5 days? prior written notice. This is to allow further time for the parties to satisfy certain conditions precedent as set out in the said SPA and to negotiate and execute a supplemental agreement to the SPA,? the firm said.

Editing by Johannes Simbolon