Govt approves transfer of South Madura PSC to SMEC
Monday, June 18 2012 - 07:27 AM WIB
Australia-listed firm MEO Australia Limited said that the Indonesian government had approved the transfer of all of AED South Madura BV?s 60% participating interest in the South Madura PSC to South Madura Exploration Company Ltd (SMEC), a wholly owned subsidiary of MEO.
The company announced in a press statement on Monday that the transfer of the PSC operatorship to SMEC concurrent with the approval. The transfer represents conclusion of the transaction previously announced on 28th December 2011.
The South Madura PSC is located onshore Madura Island, and covers an area of 1,586 square km. The other participant in the PSC is PT Eksindo South Madura with 10 percent interest.
Subject to regulatory approval for an amended work program, MEO intends to acquire seismic to advance one of several identified leads to prospect status prior to seeking a farm-in partner.
?We are very pleased to have obtained the necessary approvals to complete this transaction. MEO has sought an entry to this PSC for several years and now has a 90% participating interest, consistent with our strategy of acquiring high equity positions in prospective permits and adding technical value ahead of seeking a partner to fund drilling,? MEO?s CEO and Managing Director Jurgen Hendrich said.
?We will now work with the regulator to submit a preliminary work program and budget for the 2013 exploration period,? he added.
Editing by Benget Besalicto Tnb.