Canadian firm Can-Asia signs LoI to acquire interest in Indonesian upstream asset

Canadian firm Can-Asia Minerals Inc has signed a letter of intent to acquire a 50 percent interest in an Indonesian oil and gas property held by PT Hunamas Manumpak Interbuana for US$2.5 million in cash plus 30 million in common shares.

Can-Asia said in a statement on Wednesday that preliminary due diligence indicated the upstream hold 28 million barrels of oil in place and 569 million cubic feet of gas in place.

?No reserves as defined by NI 51-101 (Standards of Disclosure for Oil and Gas Activities under Canadian regulatory) have been determined. A full due diligence review will be carried out prior to closing of the definitive agreement,? Can-Asia said.

Can-Asia added it intended to finance the acquisition with equity financing of up to US$5.25 million on a best efforts basis. (Robert)