Continental Energy forms JV to expand Indonesian operations

Dallas-based junior exploration firm Continental Energy Corporation on Wednesday announced that Continental and its partner, GeoPetro Resources Company, have formed CG Xploration Inc. to pursue new venture oil and gas exploration and production projects and obtain new exploration concessions in Indonesia.

CG Xploration Inc. is incorporated in Delaware and is owned 50/50 by Continental and GeoPetro.

Continental's President, Richard L. McAdoo, has been named "President & CXO" of CG Xploration Inc. and will lead the new company's exploration and new ventures development activities.

McAdoo said proceed from the recent sale of Yapen Block in Papua provided Continental and GeoPetro with sufficient funds to take advantage of several promising new venture opportunities in Indonesia during 2006.

He added that the venture are already evaluating production acquisition opportunities and plan to participate in several undeveloped field exploitation opportunities and older field rehabilitation opportunities which state oil company Pertamina has announced for tender in 2006.

"We have also had our eyes on several promising new exploration concessions for some time and plan to acquire rights to explore them in 2006. We are particularly fond of the East Kalimantan area of Indonesia and consider it our core area of interest."

Continental, together with GeoPetro, has 100 percent working interest in East Kalimantan's Bengara II Block.

The partnership is preparing POD to develop Makapan gas field which is located within the PSC. (alex)