CityView agrees to reduce interest in Simenggaris block

Australian company CityView Corporation Limited said Tuesday it had agreed to transfer a 13.125 percent interest in Simenggaris block onshore East Kalimantan to its joint venture partner and the operator PT Medco Energi Internasional.

CityView said Medco had agreed to bear CityView?s share of all previous unpaid cash calls including portion of drilling and other costs in relation to 2 further wells to be drilled in the block, namely Sesayap B-1 and South Sembakung 2.

CityView, however, remains fully entitled to the recovery of the previous payments of US$1.99 million.

Following the agreement, the composition of partnership in the block are as follows: Medco 50.625 percent, state-owned oil and gas firm PT Pertamina 37.5 percent, CityView 2.5 percent, and Singaporean firm Midwestern Oil Pte Ltd 9.375 percent.

CityView added that Sesayap B-1 well was spud end of last year and South Sembakung 2 will be drilled immediately after the completion of the drilling of Sesayap B-1. (Robert)