AEM updates plan to acquire Wailawi project
Friday, December 20 2013 - 02:04 PM WIB
ASX-listed firm Artist & Entertainment Group Limited (AEM) announced on Friday 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.
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 subject to shareholder approval for:
1. The acquisition of CEP for A$12.8m through issue of shares;
2. The consolidation of AEM shares to A$0.20 (twenty cents) per share;
3. The issue of a prospectus to raise A$6 million to fund development and exploration; and
4. The change of the company name to Enhanced Oil and Gas Recovery Limited.
CEP, which is a Hong Kong registered company, and PT Perusda Benuo Taka have formed the Indonesian registered joint venture (JV) called PT Benuo Taka Wailawi. CEP and Perusda are the principal shareholders of the JV with CEP holding an economic interest of 80 percent. One of the three shareholders of CEP is Union Pacific Trading Pty Ltd (UPT), a company controlled by Siew Hong Koh, a director of AEM.
Perusda is owned by the Panajam Paser Utara Regency
The JV is to receive an assignment of a participating interest in a production sharing contract (PSC) subject to the approval of SKK Migas. SKK Migas is the Indonesian Government regulatory authority for oil and gas. Perusda has now provided CEP with its written consent to the assignment of Perusda's participating interest in the PSC to the JV.
SKK Migas has signed the PSC and will release it to Perusda on finalization of the form evidencing the provision of the performance guarantee by the JV to SKK Migas.
CEP has arranged the performance guarantee to satisfy the PSC conditions. This performance guarantee is expected to be issued by a local Indonesia bank specializing in the oil and gas industry.
On the release of the PSC, Perusda's consent form will be lodged with SKK Migas to effect the assignment of Perusda's participating interest in the PSC to the JV.
On completion of the assignment of Perusda's participating interest to the JV, AEM will commence its acquisition of CEP and issue a revised transaction timetable and will inform shareholders of further progress.
Editing by Johannes Simbolon