Bow Energy Ltd. announces acquisition of 4 Sumatra onshore PSCs
Thursday, May 18 2017 - 01:02 AM WIB
Calgary-based junior oil, gas firm Bow Energy Ltd. Announced on Wednesday that its unit Bow Energy International Holdings Ltd. (BEIH), it has entered into a Share Purchase Agreement (SPA) with Bukit Energy Inc. (Bukit), a private Canadian company, and various subsidiaries of Bukit, to acquire all of Bukit?s shareholding interests in five of its wholly-owned Singapore holding companies that own interests in four onshore Indonesian PSCs and an interest in one onshore Indonesian unconventional joint study agreement.
Under the terms of the SPA, the Company shall pay in the aggregate approximately USD$1.834 Million in cash, inclusive of working capital adjustments and outstanding receivables for the Subsidiary Shares. Completion date for the transaction is anticipated to be May 23, 2017. The SPA is subject to regulatory approval.
The company did not give detail about the blocks to be acquired but according to Bukit Energy?s website, it has interest in four onshore blocks in Sumatra, namely Kisaran PSC (22.5% non-operated interest), Mahato PSC (25% non-operated), Bahorok PSC (45%, operated) and Palmerah PSC (54%, operated), and three shale oil blocks namely Kisaran (33.75%, non-operated), Palmerah (69.36, operated) and Sakakemang (40%, operated).
The Company also announces that the Langsa TAC in Aceh expired on May 14, 2017 and was not renewed by the Indonesian government. Bow is expecting to receive the final payment for oil sales from Pertamina in August 2017.
Bow?s existing Indonesian oil and gas asset is a 44.48% net working interest in South Block A, an onshore block located in North Sumatra. Bow?s subsidiary Renco Elang Energy Pte. Ltd. is the operator of South Block A.