Ecosse Energy sells RI unit to Morrison Oil
Thursday, July 10 2014 - 01:43 AM WIB
Canadian junior exploration company Ecosse Energy Corp., a company focused on oil and gas exploration and production in Indonesia, announced Wednesday that it has sold its subsidiary company Ecosse Energy (Manokwari) Ltd (EEML) to PT Morrison Oil (PTMOL), an Indonesian oil and gas company.
The company said in a statement that EEML owns a 100 percent working interest in the Manokwari PSC in West Papua which allows it the rights to explore and exploit the hydrocarbons within the PSC. The Manokwari PSC is located onshore in the north of the Bintuni basin in West Papua Province in eastern Indonesia and covers an area of 3,902.66km2 (964,368 acres). EEML was committed to the Indonesian authorities to spend US$11,633,000 on the Manokwari PSC in its most recent work program, which it has been unable to finance.
The basis of the transaction is that PTMOL will assume all liabilities of EEML including all outstanding work commitments and guarantees in Indonesia in return for 100 percent shares in EEML.
"The company obtained control of EEML in December 2010, but has been unable to secure necessary funding or further extensions to allow us to fulfill EEML's required work programs in Indonesia. This puts EEML in potential default to the Indonesian authorities. PTMOL, a related party to a director, is now willing to assume the risks and liabilities of taking over EEML. The divestment of EEML will allow Ecosse Energy Corp to refocus its ongoing business to potential assets in North and South America, a region which will allow us easier access to equity investment capital" said Alan Morrison, President and CEO of Ecosse Energy Corp.
The company's board, including its independent directors, acting in good faith, have determined that the terms are reasonable in the circumstances of the company, including its financial difficulty, that the transaction is intended to improve the company's financial position, and that without the availability of required financing, the net value of EEML was nil to the company, the statement ended.
Editing by Reiner Simanjuntak