Cooper obtains approval for sale of RI exploration assets
Monday, May 2 2016 - 04:59 AM WIB
ASX-listed Cooper Energy (COE) announced Monday it has received approval from the Government of Indonesia for the sale of its Indonesian exploration assets to Mandala Energy Investment Pte Ltd, a Southeast Asia focused oil and gas exploration and production company.
The company said in a statement that the receipt of approval satisfies conditions precedent to the transaction, which is now expected to complete within early June 2016.
The transaction involves the sale of Cooper Energy?s interests in the Sumbagsel and Merangin III PSCs located in the South Sumatra Basin for consideration of US$8.25 million. Mandala aims to acquire 100 percent of the assets.
Cooper said it is currently evaluating bids received for its remaining Indonesian asset, the Tangai-Sukananti KSO production license. The company previously announced its intention to withdraw from Indonesia in order that resources and focus are concentrated on its growth projects developing Gippsland Basin gas resources.
In February of this year, this portal reported that the KSO was producing at approximately 800 bopd (gross) and presented the opportunity for substantially higher rates, potentially to more than 2,000 bopd, under a plan to upgrade processing and transport capacity and conduct development drilling.
The Tangai-Sukananti KSO was assessed to contain remaining Proved plus Probable Reserves1 of 3.1 million barrels (MMbbl) of oil (COE share: 1.7 MMbb) as at June 30, 2015 with further exploration potential. Production from Sukananti since 30 June has been 133.5 thousand barrels (kbbl), (COE share 73.5kbbl).
Editing by Reiner Simanjuntak