Ecosse to acquire Papua exploration block

Calgary-based company focused on oil and gas exploration and production in Indonesia Ecosse Energy Corp announced on Monday that it has entered into a Memorandum of Understanding ("MOU") to acquire 70% of the shares of Sarmi Papua Oil Ltd, United News of Bangladesh reported.

"Ecosse Energy has entered into an MOU with Sarmi Papua Oil Ltd. That will see us take control of 70% of the company and the Operatership of the North Papua PSC," said Alan Morrison, President and CEO of Ecosse Energy Corp.

"The North Papua PSC was awarded in 2009 and is a 30-year exploration and production contract. This PSC covers a large area of 8,541 km2.

Existing seismic, geological and geophysical data indicates the presence of both oil and gas in the block. This acquisition continues to advance our 2010 strategy of proving our reserves on our existing acreage and expanding our oil and gas portfolio in Indonesia."

Ecosse is acquiring the shares in Sarmi Papua Oil for US$ 1.85 million in cash plus 5,000,000 shares of Ecosse Energy Corp.

Sarmi Papua Oil Ltd. is a company incorporated in the British Virgin Isles with 100% Working Interest (WI) in the North Papua PSC in North Papua.

In Indonesia Ecosse currently has 100 percent interest in Bengkulu PSC exploration block onshore Southern Sumatra. (*)