Interra postpones Benakat acquisition again

By Romel S. Gurky

SGX-listed Interra Resources Limited announced Friday that its subsidiary Goldwater Indonesia Inc (GII) has agreed to re-extend the Longstop Date (the date where all conditions have been met) for the acquisition of a controlling ownership in PT Benakat Barat Petroleum (BBP), which owns the Benakat Barat oil field in South Sumatra.

?GII and the Sellers have agreed to further extend the Longstop Date to 2 September 2014 to allow the parties to satisfy certain conditions precedent as set out in the said SPA and to negotiate and execute a supplemental agreement to the SPA,? Interra said in a statement.

In early July, GII and the existing owner of BBP agreed to extend the Longstop Date to August 2 from July 2.

Interra announced in September of last year that it had signed Sales and Purchasing Agreement (SPA) to acquire the shares for US$78.5 million but had until June 2, 2014 to fulfill all conditions for the acquisition. Since then, however, the Longstop Date has been kept extended.

Editing by Reiner Simanjuntak