Pan Orient to acquire interest in Tungkal PSC
Monday, September 14 2009 - 03:07 PM WIB
Canadian firm Pan Orient Energy Corp. reported on Monday that it has agreed to purchase additional interests in Indonesia.
The principal interest is a 30% non operated participating interest in the Tungkal PSC onshore south Sumatra. The other interest to be acquired is a US$5 million receivable payable upon first commercial gas delivery from the Ruby gas field located offshore East Kalimantan in the Sebuku PSC.
The Tungkal and Sebuku interests are owned by subsidiaries of Fuel-X International Inc., a Canadian corporation that was placed in receivership in September 2007. s.
Closing of the transaction is anticipated to occur in the fourth quarter of 2009 and is subject to certain conditions including the completion of final due diligence on a basis satisfactory to Pan Orient.
Fuel-X Cyprus, through a subsidiary company, holds a 30% non operated participating interest in Tungkal PSC and holds through another subsidiary a receivable of US$5 million payable upon first commercial gas delivery from the Ruby gas field in the Sebuku PSC.
Both blocks are operated by Pearl Energy, a subsidiary of UAE-based Mubadala Development Company.
Tungkal PSC is located south of and directly adjacent to the Batu Gajah PSC, which is owned 90% and operated by Pan Orient. Current gross production stands at approximately 800 bopd. A Mengoepeah field revised plan of development was approved in April 2009 that includes up to ten development wells and the work over of existing wells. Development drilling is currently underway and is anticipated to be completed by year end with a target of gross production of 2,000 to 3,000 bopd. In addition, one high impact exploration well is anticipated to commence drilling in the fourth quarter of 2009 and be completed by year end.
Pan Orient President and CEO Jeff Chisholm commented: "Upon the satisfying of certain conditions and the closing of this transaction, Pan Orient will add to its already large acreage position in onshore Indonesia. The Fuel-x Tungkal asset is strategically located directly adjacent to Batu Gajah PSC where seismic operations are currently underway and a multi well exploration drilling program is planned to commence in the first half of 2010. (alex)