Petrogas relinquishes West Belida PSC
Tuesday, April 7 2015 - 01:37 PM WIB
SGX-listed RH Petrogas Limited announced on Tuesday that its wholly-owned subsidiary Orchard Energy (West Belida) Limited (OEWB) will not be seeking an extension to the initial six year exploration period of the West Belida PSC located onshore Jambi Province, South Sumatra, which is due to expire on May 4, 2015.
The company said it has made the determination taking into account the findings of past exploration efforts in the block and based on the results of the passive seismic survey recently concluded in mid-March 2015, which were not encouraging.
The company has fulfilled all its obligations towards the firm work program under the terms of the PSC.
Francis Chang, Chief Executive Officer, said: ?We constantly review our asset portfolio with the objective of deploying our capital effectively to grow our reserve and production base. The relinquishment of the West Belida Block is a reflection of our commitment to achieve such goal, as we focus our resources on developing our other assets and pursuing new opportunities in the region.?
The PSC was awarded to OEWB and PT BEL West Belida in May 2009. OEWB has 94% interest in the PSC. The acreage currently covers an area of approximately 1,046.28 km2 following partial relinquishment in 2012 under the terms of the PSC.
Editing by Johannes Simbolon