Kalrez pays outstanding cash calls for Seram PSC

Australian oil company Kalrez Energy Limited said on Wednesday that it had cleared all default cash calls and imposed interest penalties, due on the Seram joint venture production sharing contract (PSC) block in Maluku.

Kalrez said it had made payment for the operator of the block, Kufpec (Indonesia) Limited, using A$500,000 in loan from investment company Tulloch Lodge Limited.

"This is a very important step for Kalrez, in that this is the first time since January 2002, that the company has been clear of it's payment obligations as a partner in the Seram JV Project," Kalrez said in the statement.

As earlier reported, Tulloch has agreed to provide a funding combination of A$ 2 million to Kalrez. The funding consists of A$500,000 placement in Kalrez and A$1.5 million loan facility.

The Seram PSC is currently finalizing the construction of the main production facility (MPF) to process crude from the Oseil oilfield. Kufpec said earlier the MPF was expected to be available during April 2003.

Production at Oseil oilfield is continuing through a temporary production facility. (robert)