Matrix oil obtains Glagah Kambuna operatorship

Australian oil exploration firm Matrix Oil NL on Friday announced that it has entered into an agreement to obtain a 90% working interest in, and operatorship of, the Glagah Kambuna Technical Assistance Contract (TAC), located in the offshore part of the hydrocarbon prolific North Sumatra Basin. The contract covers an area of 350sqkm and is located in shallow waters just 40km northeast of the Indonesian National Oil Company's (Pertamina's) main producing areas in North Sumatra. The interest will be acquired from the current operator, PT Gunakarsa Glagah-Kambuna Energi, and is subject to due diligence and the required approvals from the Indonesia authorities.

The acquisition provides Matrix access to proven and probable reserves of 24 million barrels of oil and condensate and 60 billion cubic feet of gas in the Kambuna oil/gas/condensate discovery located within the Glagah Kambuna TAC (see map). Independent third party consultants acting for previous operators of the contract area calculated the reserve estimates.

The 90% interest in Glagah Kambuna TAC is being purchased for a total amount of US$1,961,786 with the majority of this amount not being due for payment until after the establishment of first commercial oil production from the TAC. (*)