KRX Energy executes farm-in agreement
Thursday, June 28 2012 - 04:24 AM WIB
KRX Energy Pte Ltd has executed a farm-in agreement with PT Prosys Oil & Gas International for the South Block ?A? PSC in Indonesia, and acquired a 35 percent non-operating participating interest for certain funding commitments in the forward work program approved by the South Block ?A? joint venture, according to a press statement issued on Thursday.
The move comes after Lion Energy Limited announced on June 10, 2012 that it had executed an agreement with KRX Energy, paving the way for Lion to provide ongoing funding for KRX as it moves forward with acquisition and development of oil and gas interests in Southeast Asia.
With an extensive prospect and lead inventory compiled for the 2,105 sqkm South Block ?A? identified by KRX as an un-risked potential range of 87 - 475 mmbbl for oil and 370 - 1,994 bcf for the gas (on a 100 percent basis), the farm-in represents a relatively low cost entry into a significant portfolio.
RENCO Elang Energy Pte Ltd is the operator of South Block ?A? which is located in northern Sumatra.
Post the farm-in of KRX, participating interests in the block are:
? 51 percent RENCO Elang Energy Pte Ltd
? 14 percent PT Prosys Oil & Gas International
? 35 percent KRX Energy Pte Ltd.
Editing by Dadan Wijaksana