Manhattan acquires stake at Tarakan PSC

Singapore Exchange-listed firm Manhattan Resources Limited announced on Tuesday that it has signed Share Purchase Agreement to buy 15 percent stake in Manhattan Kalimantan Investment Pte.Ltd (MIKL) for US$15 million.

Manhattan Kalimantan is a private company limited by shares incorporated in the Republic of Singapore with main assets being its interest in Provident Indonesia Energy LLC. Provident has 100 percent interest in Tarakan Offshore PSC in East Kalimantan.

The Tarakan Offshore Block covers an area of 638 sq km, Provident has identified six potential hydrocarbon bearing structures within the contract area.

Drilling for the first onshore exploratory well ?Bayan A-1?,which is located in the north of the island, commenced at the end of February 2007. A total vertical depth of 10,000 feet (3,274 metres) was drilled.

Testing of the well was completed in early July 2007. The test indicates that there are four zones at depth between 7400 and 7500 feet, totaling 50 feet, containing commercial quantity of gas. The current plan calls for the drilling of two delineation wells to appraise this specific field and prove up the current estimated probable reserves, the company said. (alex)