Orpheus sign agreements to sell Indonesian assets

By Ruli Setiawan

ASX-listed Orpheus Energy Umited Ltd (OEG) announced on Thursday it had signed agreements with Nugroho Suksmanto, PT Mega Coal and related parties regarding the sale of Indonesian assets for total proceeds of approximately US$8.2million. to be effected by the sale of OEG?s 51% equity in six entities.

The six entities are PT Daya Mega Citra and PT Daya Mega Pelita (Papua tenements), PT Pelita Dian Petangi (83), PT Pelita Kharisma Kenanga (B4) PT Alam Duta Kalimantan (ADK) and PT Citra Bara Prima (CBP).

The firm is now seeking such approval from shareholders at a General Meeting to be held on Thursday, Aug. 14, 2014.

Completion of the transaction will deliver a number of key benefits to OEG shareholders including:
(a) completion of the transaction will result in a significant. cash return to Orpheus of approximately $8.2 million with a total profit of approximately $ 3.9 million.
(b) Sale of non-performing assets will allow the company to consider alternative asset acquisition that the Directors? believe will add value to shareholders, $350,000 has already been received by Orpheus n initial deposits on the transaction, however there have been delays in the receipt of further milestone deposits per the sales agreements, so the Orpheus Board determined it sensible to extract a personal legal undertaking from Suksmanto prior to announcing the details of the assets sales. Through the personal undertaking, Suksmanto personally commits to settle outstanding debts by PT Mega Coal and related parties, and to indemnify Orpheus and related parties against cost, loss or liability, suffered by Orpheus or related parties in the case of a breach of the project sales agreements.

Editing by Johannes Simbolon