Singapore?s firm raising funds to buy oil field in Indonesia

Singapore-listed oil company Interra Resources Limited announced on Friday it had entered into an agreement with placement agent UOB Kay Hian Private Limited to rise about S$13.1 million (around US$7.75 million) to finance the acquisition of PT Retco Prima Energi.

Interra said in its report to the Singapore Stock Exchange that it would allocate S$7.2 million of the funds to finance the acquisition of 70 percent shares in Retco, the operator of the Tanjung Miring Timur oil field in South Sumatra, and another S$3.8 million to support 5 infill drilling wells at the oil field.

Interra has agreed to purchase 70 percent shares in Retco for US$5.18 million.

Interra said the oil field was currently producing around 800 barrels of oil per day.

"As of January 2004, the remaining proven recoverable reserve in the oilfield was 12.7 million barrels of oil with an additional recoverable reserve of 20.5 million barrels of oil," the company said.

Interra, formerly known as the troubled firm Van Der Horst Limited, is currently operating two onshore oil fields located in Yenangyaung and Chauk in Myanmar. (Robert)