Harvest decides to relinquish Budong-Budong block
Wednesday, August 13 2014 - 01:27 AM WIB
NYSE-listed Harvest Natural Resources said it has decided to relinquish the Budong-Budong block in West Sulawesi.
?In June 2014, we and our joint interest partner decided to relinquish our interest in Budong-Budong block in West Sulawesi,? the company said in a statement obtained Wednesday. ?We are working with the Indonesian government to complete the relinquishment which may take several months.?
?As a result of these actions, the company recognized a further charge of $3.2 million during the three months ended June 30, 2014, related to drilling obligations incurred in connection with the December 2012 acquisition of an additional 7.1 percent interest from our joint interest partner,? it added.
Harvest Natural Resources, through its subsidiary Harvest Budong-Budong BV holds a 71.5 percent interest in the Budong-Budong PSC, with the remainder held by Tately Budong-Budong BV.
Harvest said in March of this year it has satisfied all work commitments for the current exploration phase of the block.
Harvest drilled the LG-1 exploration well in January of 2011, but was abandoned on April 6 after encountering difficulty in controlling the well due to high pressures. The KD-1 exploration well was drilled in June 2011, which was also later abandoned.
Editing by Reiner Simanjuntak