CEB looking for farm-in opportunities, focused on South Sumatra
Tuesday, October 27 2015 - 01:01 AM WIB
AIM-listed resource investment company CEB Resources plc said on Monday it is currently focused on the onshore South Sumatran Basin in Indonesia and is looking at a number of opportunities, including possible farm-in agreements in the area, with a focus on oil and gas producing assets.
The company has to date completed due diligence on four potential assets, has presented offers to sellers for two of these assets and expects to put an offer to a third vendor in the near future.
The first asset for which the company has made an offer has 80 wells currently drilled by the current operator. A key attraction is that the existing operator discovered a virgin reservoir after drilling three wells, which are producing approximately 400 bopd per well. The Board also believes that there are seven additional drillable locations in this concession.
The second asset for which the company has made an offer is a producing oil field which also has three completed gas wells.
The third asset, for which the company is considering making an offer, would be a joint venture with a large Indonesian state oil and natural gas company.
The company's strategy when looking at potential assets to acquire in the Indonesian oil and natural gas sector is to acquire fields which have the potential to produce 1,000 barrels a day or more, with a working interest of around 30-40 percent. However, the company will still consider other potential assets if the management team considers them to be a good fit with the investing strategy with sufficient potential revenue and profits.
Editing by Johannes Simbolon