PEARL acquires offshore E. Java Sebana PSC

Singapore-based PEARL Energy Limited announced Friday it had signed a sale and purchase agreement to acquire Sebana Ltd, a company that owns a 90 percent working interest in the Bulu Production Sharing Contract (PSC) offshore East Java, from PT Petroland Energi.

Under the terms of the acquisition, PEARL will pay US$1.5 million to Petroland for Sebana and bear the cost of the bonus payment obligations to the Indonesian government required under the Bulu PSC, up to a maximum amount of US$3 million.

In addition, PEARL will transfer 5 percent working interest in the Bulu PSC to PT Satria Wijaya Kusuma (SWK). SWK also will have the option to acquire an additional 5 percent working interest in the exploration block from PEARL in the event of successful exploration.

PEARL said Friday it planned to undertake a 2,000 sq km 2D seismic acquisition program on the 3,494.6 sq km PSC at the end of December 2005 and to drill up to two exploration wells in 2006.

The remaining 10 percent working interest in the Bulu PSC is held by PT Satria Energindo. (Robert)