Rift Basin signs MoU with Synergy Wijaya
Thursday, June 6 2013 - 06:28 AM WIB
TSX-listed Rift Basin Resources Corp said that it had signed with PT Sinergi Wijaya Kusumah a memorandum of understanding (MoU) which supersedes a trilateral arrangement previously announced.
The company said in a press statement on Wednesday that PT Sinergy holds the exclusive rights to exploit an onshore multi-reservoir oil field known as the Dandangilo & Beji Block, containing 110 existing wells within an 80 sq.km. area in Bojonegoro, East Java, Indonesia.
PT Sinergi has the rights under a renewable cooperation agreement to produce oil from existing shut-in oil wells in the working area.
Following the recent site reconnaissance visit by Rift Basin's technical team, and assessment of the technical, economic, legal and regulatory requirements associated with the exploitation of the Field, the new MOU seeks to formalize the renegotiated agreement whereby Rift Basin can now earn up to 70 percent interest in PT Sinergy by funding initial service and enhancement work.
The renewal period underlying the agreement will change to a specific term of 5 years for each period, for a total of 20 years, and provision is being made to segregate the obligations such that the Company is shielded from any direct or indirect environmental or human related liabilities associated the district-level cooperative's exploitation activities.
In addition, the work commitment schedule will be modified in accordance with an independent third-party technical assessment and resulting recommendations, to be reviewed and mutually agreed upon between the Company and PT Sinergy.
Editing by Benget Besalicto Tnb.