Acquisition of Benakat by Interra postponed again

By Romel S. Gurky

SGX-listed Interra Resources Ltd announced on Wednesday that its subsidiary Goldwater Indonesia Inc. (GII) has agreed to re-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

In June, 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 a statement that both agreed to extend again the Longstop Date to Aug. 2 ?to allow 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.

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.

Editing by Johannes Simbolon