Hedong Energy to buy Kondur Petroleum

Canadian Venture Exchange-listed oil company Hedong Energy Inc. Announced on Wednesday that it had signed a memorandum of understanding (MoU) with local oil company Kondur Petroleum S.A. ("Kondur") for a share exchange between Kondur and the Hedong.

Under the terms of the Agreement, the shareholders of Kondur would receive 40 million shares of the Hedong in exchange for all the shares of Kondur

Hedong said the agreement is non-binding until the successful completion of extensive due diligence by the company and the approval of any parties engaged in the Malacca Strait concession.

Kondur is the operator and 34.46 interest holder of Malacca Strait production sharing contract (PSC) in Central Sumatra. The Malacca Strait concession comprises an area of 11,865 square kilometers and currently produces approximately 12,000 barrels of oil per day (BOPD) from both onshore and offshore wells.

Other interest holders in Malacca Strait PSC are China?s CNOOC (32.58 percent), Australia?s Novus Petroleum (25.03 percent) and Malacca Petroleum (6.93 percent). (alex)