Cooper sells Tangai-Sukananti KSO to ACL, Lamara
Tuesday, June 7 2016 - 01:02 AM WIB
ASX-listed Cooper Energy announced Tuesday it has signed an agreement with TSX-listed ACL International Ltd., a Canadian oil and gas company (through its wholly owned subsidiary Bow Energy International Holdings Inc.), and Lamara Energy Pte, a Singapore based oil and gas company, for the sale of its 55 percent interest in the Tangai-Sukananti KSO, South Sumatra Basin, Indonesia.
Cooper said in a statement that under the terms of the agreement, Cooper Energy will receive total consideration of US$4.3 million (A$5.9 million) inclusive of working capital. The sale agreement is subject to regulatory and joint venture approvals.
A deposit of US$0.26 million has been paid and Cooper Energy will receive a further US$3.4 million on completion at July 29, 2016, with the balance to be received through deferred payments and as receivables fall due, the statement added. Consistent with the advice of the company?s Cleansing Notice of May 18 the agreed sale of the Indonesian production assets will result in an immaterial loss (approximately A$2 million against the book value at December 31, 2015).
The transaction will complete the company?s withdrawal from Indonesia, announced earlier this year as part of its strategy to concentrate on Australia and in particular on the Gippsland Basin gas projects. The sale of the company?s Indonesian exploration assets was completed on 1 June for total proceeds of US$9.07 million.
?The efforts and technical judgment of our team in Indonesia delivered a 260% increase in proved and probable oil reserves in the KSO in our most recent reserves report. Production has been increased around 13 times from approximately 60 barrels of oil per day prior to being shut in under previous ownership to the current rate of approximately 800 barrels per day, with substantial upside from the development plans the team has prepared,? said Cooper Energy Managing Director David Maxwell.
ACL Director, Aqeel Virk, said that ?Acquiring the KSO adds to our existing Indonesian assets and is complementary to our experience. Moreover, the synergy with Lamara further strengthens our operations in Indonesia?.
Editing by Reiner Simanjuntak