Interra close to acquire Indonesian oil fields

Singaporean firm Interra Resouces is close to acquire working interest in two oil fields in Indonesia after the concession holder PT. PT Mentari Abdi Pertiwi is prepared to accept the offer price of US$27 million made by Interra to acquire the entire issued share capital of its fully owned subsidiary, Equatorial Energy (Indonesia) Inc, the company announced Wednesday.

Equatorial owns 80 percent of the issued share capital of Perkasa Equatorial Sembakung Ltd. (PES) and 100 percent of the issued share capital of Pilona Petro Tanjung Lontar Ltd. (PPTL)

PES holds a Technical Assistance Contract (TAC) from Pertamina to develop, enhance and exploit the Sembakung Fields in South Kalimantan. The Sembakung Fields is currently producing approximately 5800 barrels of oil per day. It had remaining proven and probable oil reserves of approximately 23 million barrels of oil (MMBO) at 30 June 2004.

PPTL is the holder of a Technical Assistance Contract from Pertamina to develop, enhance and exploit the Tanjung Lontar and Sengkuang Fields and the Arahan-Banjarsari fields in Sumatra. The total production from these fields is about 900 barrels of oil per day. The proven and probable oil reserves as at 30 June 2004 are approximately 2.5 MMBO.

Interra has until 23 August 2004 to complete its due diligence. Pending the execution of a formal sale and purchase agreement, Mentari has reserved their rights to consider other offers. (alex)