Ratu Prabu to acquire Bangadua Petroleum

IDX-listed firm PT Ratu Prabu Energi Tbk plans to acquire local oil firm PT Bangadua Petroleum, which has upstream operation in Jatibarang, Cirebon

The firm would use internal funds and raise loans for the acquisition which is estimated to cost US$15 million, the company said in statement to Indonesian bourse on Wednesday.

The acquisition process is expected to be completed in October, 2008.

Besides, Ratu Prabu plans to build new facilities to develop its oil field in South Sumatra to the "optimum" level. The firm has three fields in the province, that is Abab (which consists of 173 wells), Raja (114 wells) and Dewa (60 wells). The company needs to $150 million for workover and new drilling to increase the fields' output to the optimum level.

The firm is requesting permit from state owned oil and gas company PT Pertamina for the workover and new drilling program and is expected to launch the programs in October this year. (*)