Australia?s Cooper Energy farms in South Madura PSC

Australia oil and gas firm Cooper Energy Limited announced Monday it had acquired a 50 percent stake in South Madura Exploration Company Pte. Ltd. (SMEC), a company that holds 90 percent of the rights and obligations in the South Madura Production Sharing Contract (PSC).

Cooper Energy said in a statement that the farm-in to the PSC will cost about US$1.5 million, made up of past costs, vendor consideration and PSC contractual payments.

Cooper Energy will also pay 50 percent of the cost of a US$8.9 million work program (Cooper Energy share: US$4.5 million) comprising seismic and wells, the company said.

The South Madura PSC is located in East Java, approximately 120 km northwest of Bali, immediately to the north of the Jeruk and Oyong oil and gas discoveries.

The PSC was awarded by the government to PT Eksindo Petroleum Tabuhan in August 2003. SMEC is a 100 percent owned subsidiary of Eksindo.

Cooper Energy?s CEO, Michael Scott, said the first well is expected to be drilled in the South Madura PSC early in 2006 following seismic processing and interpretation. (Robert)