Artist & Entertainment signs agreement to acquire an interest in Indonesian oil and gas
Monday, November 15 2010 - 06:43 AM WIB
UPT and Tiger Energy Limited (TEL), an Australian unlisted public company, are parties to a memorandum of understanding (MOU) pursuant to which UPT has agreed to subscribe for convertible notes which on conversion into shares in TEL will constitute 60.1% of the issued capital of TEL (TEL Convertible Notes).
TEL is an unlisted public company which is a party to an agreement with an Indonesian government agency and an Indonesian provincial government corporation pursuant to which it is entitled to receive 85% of the net project earnings generated from the Wailawi Oil and Gas Project after meeting its royalty and other obligations under certain production sharing and cooperation agreements with the Indonesian government agency and public corporation.
AEM is proposing to acquire UPT?s rights in respect of the Wailawi Oil and Gas Project by receiving an assignment of UPT?s rights under the MOU from UPT to subscribe for the TEL Convertible Notes.
AEM is to acquire its interest in TEL by the conversion of the Convertible Notes into shares in TEL which will occur on the satisfaction of various conditions precedent including obtaining various shareholder approvals and the Company re-complying with Chapters 1 and 2 of the ASX Listing Rules (Proposed Transaction).
Wailawi Oil and Gas Project
The Wailawi Oil and Gas Project covers some 30.74 square kilometers and is located in the southern part of the Mahakam Delta Complex of the petroleum producing Kutai Basin, 12km southwest of Balikpapan in East Kalimantan, Indonesia.
The licence for the Wailawi Oil and Gas Project is held by Perusda Benuo Taka (Perusda), an Indonesian company owned by the East Kalimantan Panajam Paser Utara Regency Government in Indonesia .
In October 2005, Perusda entered into a production services contract with BPMigas (the Indonesian Executive Agency for Upstream Oil and Gas Activity) (BPMigas) in respect of the Wailawi Oil and Gas Project for a period of six years. Perusda is also the operator of the Wailawi Oil and Gas Project. BPMigas establishes and supervises cooperation contracts and production sharing contracts previously undertaken by Pertamina (the national oil company of Indonesia ).
The Wailawi Oil and Gas Project was discovered in 1975 and development commenced in 1983 with the drilling of three wells and the subsequent commencement of production. Since that time, two additional wells have been drilled. All production is collected and processed at the Nenang processing plant (which was built in 1984) and then transported free of charge through Pertamina?s pipelines to the refinery in Balikpapan . There remain untapped oil and gas zones with further upside potential within the project area. (end of edited release)