AEM provides updates on Wailawi oil, gas project acquisition
Monday, March 24 2014 - 01:28 AM WIB
ASX-listed Artist & Entertainment Group Limited (AEM) announced Monday that further significant progress has now been made by Centre Energy Petroleum Limited (CEP) in its acquisition of an interest in the Wailawi Oil and Gas Project in Paser Utara Regency, East Kalimantan.
As has been previously announced, AEM is proposing to acquire 100 percent of CEP following completion of CEP's acquisition of an interest in the Wailawi Oil and Gas Project.
CEP, which is a Hong Kong registered company, and Paser Utara Regency-owned company PT Perusda Benuo Taka have formed an Indonesian registered joint venture (JV) called PT Benuo Taka Wailawi to acquire the oil and gas project. CEP and Perusda are the principal shareholders of the JV with CEP holding an economic interest of 80 percent.
AEM said in a statement obtained Monday that that all regulatory approvals for the final registration of JV have been obtained, including approvals from the Indonesia Investment Coordinating Board (BKPM) and the Ministry of Law.
?Furthermore, AEM has been advised by CEP that all conditions precedent to the release of the Cooperation Agreement by SKK Migas have been satisfied, including the payment of the US$200,000 signing fee and the US$1,500,000 performance guarantee. With the satisfaction of these conditions precedent, CEP is now seeking the issue of the Perusda?s written consent to the assignment of Perusda?s participating interest in the Cooperation Agreement to JV,? the statement added.
As has been previously reported, AEM plans to hold an extraordinary shareholders meeting to obtain approval for
1. the acquisition of CEP for AU$12.8million through issue of shares;
2. the consolidation of AEM shares to AU$0.20 (twenty cents) per share;
3. the issue of a prospectus to raise a minimum of AU$3.5 million and a maximum of AU$4.5 million to fund development and exploration; and
4. the change of the company name to Enhanced Oil and Gas Recovery Limited.
Editing by Reiner Simanjuntak