Kalrez pays outstanding cash calls to resume stock trading

Australian oil company Kalrez Energy Limited said on Wednesday that it had paid the amount of US$867,932.28 as outstanding cash calls and interest charged for its Seram joint venture PSC block in Maluku to the operator Kufpec (Indonesia) Limited.

?As a result we would like to request that the Trading Suspension now be lifted,? said Kalrez in a statement to Australian Stock Exchange.

On Tuesday, Kalrez requested to suspend trading due to a default position with Kufpec.

The company said it there remained two outstanding cash calls owing to Kufpec amounting to $227,076 in the forthcoming months as Kufpec finalizes the construction of the Main Production Facility to process crude from the Oseil oilfield.

Kalrez said however it anticipated oil lifting scheduled for December 14th 2002 from its Bula PSC, which will result in the receipt of net proceeds in early February 2003 of approximately $850,000. This will allow Kalrez to satisfy these outstanding cash calls within a timeframe acceptable within the Terms of the Joint Operating Agreement that governs the Seram JV.

The Oseil oilfield is currently scheduled to commence production through a Temporary Production Facility on December 19th, and to start producing cash returns from February 2003 onwards.

Kalrez said with current payment its investment in the Seram JV had amounted to A$4.95M (excluding acquisition costs).

Kufpec holds 97.5 percent working interest in Seram PSC, while Kalrez holds the remaining 2.5 percent. (robert)