Bumi Modern, Pentacal agree to tie up
Saturday, September 2 2000 - 04:00 AM WIB
Property concern PT Bumi Modern of the Bakrie Group has signed an agreement with Pentacal Energy Inc. of Canada to prospect for oil in the Republic of Yemen.
The company's management said in its letter to the Surabaya Stock Exchange that the company, in cooperation with the new partner Pentacal, also a publicly listed company in Canada, would explore for oil in Block R-2 in Yemen.
According to the company's plan, it would conduct in field seismic in an area covering 285 kilometers, drill six delineated wells and explore for oils in R-2 block, and acquisition seismic over 1,000 kilometers in Block 13.
Bumi Modern is actually involved in the property sector, especially in the hotel sector. However, because of the downturn in the property, the company is trying to switch its business core to the oil and gas industry, which it considers to be a prospective business.
The company recently plants a rights issue of Rp 9.3 trillion through local stock markets to finance the acquisition of Gallo Oil (Jersey) Ltd., but the plan has been put on the balance because it draws confusion and criticism from the public due to ambiguous valuation of the oil firm that is still linked to the Bakrie Group. (*)