Anzon sells Indonesian upstream assets
Wednesday, October 3 2007 - 06:35 PM WIB
The company said in a report released last week that it had decided not to pursue any further activity in Kruh TAC onshore South Sumatra after disappointing drilling results in 2006.
The company also decided to sell its Kaya TAC, which is located near Kruh TAC.
On 17 September 2007 the company, via its wholly owned subsidiary PT Anzon Energy Indonesia entered into a conditional Sale and Purchase Agreement with PT Retco Prima Energi for the sale of its shares in PT Binatek Reka Kruh (which holds the Kruh TAC) and PT Indama Putera Kayapratama (which holds the Kaya TAC) for of approximately US$5 million net of liabilities.
The company had received US$400,000 as the initial payment with the remainder of the consideration, subject to final due diligence, due no later than 26 October 2007.
The Kruh TAC is located in South Sumatra and is physically juxtaposed to the Kaya TAC. The size of the Kruh TAC (258 sq. km.) is approximately three times the size of the Kaya TAC and has two oilfields in its boundaries from which production has been derived in the past. After the acquisition and review of the data regarding the two oilfields, the North Kruh field was brought on production in May 2002 and has been producing continuously since that time. As per january 2007, production from Kruh TAC was 75 BPD.(alex)