Nullarbor cancels deal to acquire interest in S. Sumatra exploration block

ASX-listed firm Nullarbor Holdings Ltd. announced on Wednesday that it was unable to achieve a satisfactory joint operating agreement (JOA) with PT Sele Raya Belida (SRB) for participation in Belida PSC, South Sumatra.

Currently, the company is in negotiation with SRB in an attempt to settle the issues, Nullarbor said in statement.

According to Nullarbor, SRB have is now given notice that the farm-out agreement has terminated and SRB have repaid to the company of US$500,000.

Earlier, Nullarbor executed deal to acquire 40 percent working interest in Belida PSC from SRB. Under the deal, Nullarbor will pay SRB US$3 million in staged payment.

Meanwhile, Nullarbor is conducting due diligence studies and negotiating with Indonesian firm to form joint venture on the two prospective gas and oil projects, both indicated oil reserves.

But the company did not give further information about the projects. (denny)