Peak seeks approval for sale of SBA interests

By Romel S. Gurky

ASX-listed Peak Oil & Gas Limited announced on Wednesday it dispatched to members a Notice of Meeting seeking approval for the sale of its indirect interest in South Block A PSC (SBA PSC) and associated inter company debt.

Peak has a 38.25 percent economic interest in SBA PSC in North Sumatra. This interest is held via Peak?s wholly owned subsidiary, Peak Oil & Gas (SBA) Pte Ltd (POGSBA), which is the holder of 75 percent of the issued capital of Renco Elang Energy Pte Ltd (REE), the 51 percent participant and operator of the PSC.

In addition to the indirect interest in the SBA PSC, there is a $4,164,673.11 debt owed by POGSBA to the company and to the company?s wholly owned subsidiary Peak Oil & Gas (Australia) Pty Ltd.

Proceeds of sale will be to reduce Peak?s debt to Octanex NL and to provide Peak with capital to meet corporate overheads.

Peak has an outstanding debt to Octanex, for monies loaned by Octanex to Peak and predominantly spent by Peak to fund the acquisition of 2D seismic and other expenditure on the SBA PSC.

Editing by Johannes Simbolon