Matrix Oil signs SPA to sell Sumatra oil blocks

Australian publicly listed oil company Matrix Oil NL announced Thursday its subsidiaries Matrix Oil (Asahan) Pty Ltd and Matrix Oil (Glagah Kambuna) Pty Ltd had entered into sale and purchase agreements (SPAs) respectively for the Asahan Production Sharing Contract and the Glagah Kambuna Technical Assistance Contract located offshore North Sumatra.

“As at the date of this announcement, there remain to be satisfied a number of conditions precedent under both SPAs prior to these agreements being finalised. Whilst a number of the conditions precedent have been satisfied, the primary conditions outstanding relate to the receipt of Indonesian regulatory approval which has taken longer then anticipated,” Matrix said in a statement.

“We now estimate that settlement of the Asahan SPA will not occur until some time in January 2004 followed by the likely settlement of the Glagah Kambuna SPA in February 2004,” Matrix added.

Matrix operates Asahan PSC and Langsa TAC with 75 percent and 90 percent of working interest, respectively.

Matrix did not say whom the concession will be sold to, but earlier, an official of JSX-listed oil firm Medco Energi International said it, together with Japan's Mitsui Corp.'s oil subsidiary MOECO were in talks to acquire the blocks. (robert)