Exploration period of SBA PSC extended

By Romel S. Gurky

ASX-listed Peak Oil & Gas Limited (Peak) announced Friday that the Indonesian Ministry of Energy and Mineral Resources has approved a 19-month extension to the exploration period of the South Block A (SBA) Production Sharing Contract (PSC) in North Sumatra.

?This extension means that the exploration period will now end on December 4, 2016 and allows the PSC contractor further time to drill one exploration well in order to fulfill the PSC firm commitment,? Peak said in a statement.

Earlier this month, Peak shareholders approved a resolution for Peak?s interest in the SBA PSC to be sold. The directors are pursuing avenues for the sale of Peak?s SBA Interests and aim to close a transaction before the end of the financial year.

Peak?s majority controlled company, Renco Elang Energy Pte Ltd (REE), is the operator of the SBA PSC with a 51 percent working interest (Peak?s 75% shareholding in REE equates to a net economic interest of 38.25%).

Editing by Reiner Simanjuntak