Quest eyeing Sumatra exploration block

ASX-listed junior oil, gas firm Quest Petroleum NL announced Friday it has entered into a heads of agreement to subscribe for 14.5% of the issued capital in Merric Capital Pty Ltd for A$310,000. A final agreement is to be executed within 30 days.

Merric is a private Australian company that has for the past 2 years has focused on developing an oil and gas exploration and production business in Indonesia through its 80% owned subsidiary, PrabuEnergy Pty Ltd. The remaining 20% of PrabuEnergy is owned by private Indonesian individual shareholders.

Quest will have option to increase its stake in Merric to 25% interest.

PrabuEnergy has been awarded a Joint Study area covering approximately 2,123km2 in onshore South Sumatra. The Ranau Joint Study was awarded to PrabuEnergy on 15 September 2010. and will be conducted by PrabuEnergy in conjunction with BPMIGAS and the geological department of a University in Jakarta. The Joint Study process in Indonesia allows PrabuEnergy an exclusive period to complete a technical study over the Ranau area.

Upon successful completion of the study, PrabuEnergy will have the right to bid for award of a Production Sharing Contract (PSC) over the area. PrabuEnergy significantly will hold the exclusive access to the data and interpretation acquired on the Ranau area generated through the Joint Study.(alex)