Bow Energy closes Indonesia acquisition
Thursday, May 25 2017 - 02:12 AM WIB
Canada-based firm Bow Energy Ltd. Announced Wednesday the closing of its corporate acquisitions from Bukit Energy Inc., a private Canadian company.
The acquisitions result in Bow acquiring interests in four Production Sharing Contracts (PSCs) and one non-conventional joint study agreement (JSA), all interests are located onshore in Sumatra.
The Company?s wholly owned subsidiary, Bow Energy International Holdings Ltd.,(BEIH) acquired all of Bukit?s shareholding interests in five of its wholly-owned Singapore holding companies (the ?Holding that own the interests.
The Holding Companies being acquired by BEIH own the following interests in the conventional and non-conventional PSCs and non-conventional JSA:
? Bohorok PSC (conventional) ? operated 50% participating interest, 465,266 net acres
o Drill ready step-out location with resource potential of 41 BCF & 3 MMBC
? Palmerah Baru PSC (conventional) ? operated 54% participating interest, 98,977 net acres
o Several light oil play trends, shallow and deep analogues in surrounding PSC?s with prolific production
? Palmerah Deep PSC (non-conventional)- operated 69.36% participating interest, 170,398 net acres
o Area underlies conventional PSC
? Mahato PSC (conventional)- 20% participating interest, 167,115 net acres, non-operated
o 2 drill ready locations adjacent to producing fields
? Bohorok Deep (non-conventional)- 20.25% participating interest in a JSA, non-operated with option to become operator
o Area of JSA underlies the Bohorok PSC and adjacent to Pertamina?s non-conventional PSC
All of the interests are adjacent to producing oil and gas fields and near existing infrastructure.
Under the terms of the SPA, the Company shall pay in the aggregate approximately US$1.834 Million in cash, inclusive of working capital adjustments and outstanding receivables for the Subsidiary Shares.
Bow?s President Mo Fazil stated, ?With this strategic acquisition, in addition to the exciting South Block A PSC interest of Bow (44.48% operated working interest, 46,273 net acres), the Company is well positioned in the prolific Sumatra basin to carry out its drilling activity targeting stacked reservoirs. Bow?s immediate focus is to drill appraisal wells on South Block A and Bohorok PSC?s and to subsequently apply for Plans of Development with the Indonesian Government, concurrent with furthering our exploration activities across our portfolio. With this acquisition, Bow?s total net acreage has increased to 948,029 acres, containing numerous leads and prospects, providing us a large land base to explore and develop in one of the most prolific oil and gas producing regions of the world.?