Interra revises down economic value of West Benakat KSO

By Romel S. Gurky

SGX-listed Interra Resources Limited said on Thursday Gaffney Cline & Associates has revised down its economic evaluation report on the West Benakat PSO which Interra is seeking to acquire.

The post-tax NPVs for the West Benakat KSO associated with 2P reserve case as at March 31, 2014 (based on discount rates of 8 percent to 15 percent) have been revised down to a range of US$52.74 million to $42.82 million.

Previously, the NPV was set at a range of $62.19 million to $50.77 million.

While Gross Reserves of the block remain unchanged, the equivalent Net Entitlement Reserves are reduced by 0.23 mmstb, Interra said.

Interra announced in September of last year that it had signed Sales and Purchasing Agreement (SPA) to acquire a controlling ownership in PT Benakat Barat Petroleum (BBP), which owns the West Benakat oil field in South Sumatra. The firm has yet to realize the acquisition.

Editing by Johannes Simbolon