McLaren reduces stake at S. Sumatra CBM project

Canadian firm McLaren Resources reported on Wednesday that it has restructured its interest in a coal-bed methane (CBM) project in Indonesia to convert a working interest into a net carried interest.

?This action had the effect of eliminating any obligations to fund potentially enormous capital costs, while retaining an interest in prospective future profits. The restructuring also yielded a full recovery of embedded costs and the simultaneous discharge of a potentially dilutive convertible debenture,? the company without giving detail.

McLaren and local firm PT.Ephindo - under the flag South Sumatera Energy - together with Medco E&P as been awarded a CBM exploration area in South Sumatra on May 2008.

McLaren said in 2006 announcement that it would earn 63 percent of PT Ephindo's interest in a 99,000 hectare property in South Sumatra by performing exploration and development work.(alex)