Buyers cancel acquisition of Tangai-Sukananti KSO

By Romel S. Gurky

ASX-listed Cooper Energy said that TSX-listed ACL International Ltd and Singapore?s Lamara Energy Pte have terminated an earlier agreement to acquire a 55 percent interest in the Tangai-Sukananti KSO, South Sumatra Basin.

Cooper said in a statement Wednesday that the two buyers have terminated a sale and purchase agreement signed in June to acquire Cooper?s stake in the KSO because regulatory approval could not be obtained by the initial target of July 29.

?As announced to the ASX on 28 July, regulatory approvals required for completion of the transaction were not secured in time for the original anticipated completion date of 29 July. While pursuit of the required approvals was ongoing, the buyers of the assets declined an extension to the transaction sunset date and exercised its right to terminate the sale and purchase agreement,? the statement said.

As a consequence, the proposed transaction will lapse and Cooper said it will pursue other options for sale of the asset, which is currently producing at approximately 500 bopd (Cooper Energy interest: 55%) and is cash generating.

Cooper Energy Managing Director David Maxwell said that non-completion of the transaction would have a favorable impact on the company?s operating cash flow and sales revenue.

?Our intention remains to divest the Tangai-Sukananti KSO so that we can concentrate our efforts on our growth projects in the Gippsland Basin. We will continue the sale process and, in the meantime, benefit from the production, revenue and cash flow generated from the KSO? said Maxwell.

The divestment of the Tangai-Sukananti KSO was supposed to complete the Cooper?s withdrawal from Indonesia, announced earlier this year, as part of its strategy to concentrate on Australia and in particular on the Gippsland Basin gas projects.

Editing by Reiner Simanjuntak