HK?s South Sea issues debentures to finance exploration block acquisition
Friday, June 24 2005 - 02:58 AM WIB
Hong Kong Exchange-listed oil firm South Sea Petroleum Holdings announced Friday that it had entered into a Subscription Agreement with Tin Loon Trading Company, a company incorporated in Hong Kong mainly involves in import and export trading and investment, for Convertible Debentures with an aggregate amount of HK$40,000,000 and 1% interest per annum due 2008.
The net proceeds would be used to pay the US$5,800,000 needed for the acquisition of 65% shares of PT. Cahaya Batu Raja Blok (CBRB).
CBRB sole asset is working interest in Air Komering onshore exploration block in South Sumatra. Under the PSC contract CBRB will explore and develop petroleum and natural gas in the block, an area consists of approximately 4,110 square kilometers for 30 years.
The block was granted to CBRB last year.
South Sea Petroleum earlier said the block has the potential reserves of 250 million barrels of oil and 100 BCF of natural gas.(alex)