Quest to acquire Merric?s S. Sumatra gas prospect

Australian-listed firm Quest Petroleum NL announced Thursday that it has signed deal to acquire 100 percenr shares of Merric Capital Pty Ltd, which holds an 80% interest in the onshore Ranau gas exploration prospect in South Sumatra, through its subsidiary Prabu Energy Pty Ltd.

The Ranau prospect is the most advanced of the exploration prospects in the Merric portfolio, it said.

Completion of the acquisition is subject to all other Merric shareholders approval and a Production Sharing Contract (PSC) being granted on the Ranau gas prospect by Indonesian government.

Merric, through its 80% held subsidiary PrabuEnergy Pty Ltd, was awarded a Joint Study area covering approximately 2,123km2 in onshore South Sumatra on 15 September 2010.

The Joint Study process in Indonesia allows PrabuEnergy an exclusive period to complete a technical study over the Ranau area. PrabuEnergy have completed the study work programs and are currently in the process of applying for a PSC over the area. PrabuEnergy significantly will hold the exclusive access to all the data and interpretation acquired on the Ranau area through the Joint Study.

The Ranau area has only limited drilling data to date. However, it is located in close proximity to producing areas of the South Sumatra Basin and is thought to contain similar hydrocarbon structures, the company said.(romel)