Renco Elang asking for exploration period extension for SBA PSC
Tuesday, April 28 2015 - 08:08 AM WIB
ASX-listed Peak Oil & Gas Limited announced on Tuesday that its subsidiary, Renco Elang Energy Pte Ltd (REE) has requested an extension of the initial six year exploration period of the South Block A (SBA) PSC in Aceh which expires in May 2015.
The application has been favorably received and Peak is hopeful that it will soon receive notifcation of extension, the firm said.
?If such consent is not granted, and if the Firm Work Commitment has not been completed by May 2015, the SBA PSC may be terminated by the regulator. The outstanding component of the Firm Work Commitment is the drilling of an exploration well,? the firm said.
If the government grants the extension, the firm said it will undertake a prospectivity review to determine the best prospect for the drilling. This prospectivity review will consider all field data and will consider the Amanah Timur-1, Simpang Deep, Simpang Djerneh and Sungai lyu targets.
The South Block A (SBA) PSC, located in the prolific North Sumatra Basin, was granted in 2009 with a a contract term of 30 years, including an initial exploration period of six years.
Ninety five percent of the territorial area of SBA PSC is located in Aceh Province where between 2009 and 2012 there were certain negotiations between the Indonesian central government and Aceh provincial government in relation to the Law No. 11 of 2006 regarding the autonomy of Aceh Province. One of the impacts was that several PSC companies located in Aceh, including REE, were unable to conduct upstream oil and gas activities in Aceh for the first two years of the PSC term.
REE is the operator with a 51% interest. Its partners are KRX Energy Pte Ltd and PT Prosys Oil & Gas.
Editing by Johannes Simbolon