Singapore's Interra fails to acquire Equatorial Energy

Singapore-based firm Interra Resources Limited said Thursday that it would not continue the plans to purchase the entire shares in Equatorial Energy (Indonesia) Inc because the preliminary agreement had been called off.

Equatorial, wholly owned by PT Mentari Abdi Pertiwi, holds an 80 percent of the issued share capital of Perkasa Equatorial Sembakung Ltd (PES), and a 100 percent of the issued share capital of Pilona Petro Tanjung Lontar Ltd. (PPTL).

Interra has offered a price of US$27 million for the entire shares in Equatorial.

Interra, however, did not disclose the reason for the failure, but earlier announcement said Mentari is granted rights to consider other offers until the execution of the deal.

PES holds a Technical Assistance Contract (TAC) from Pertamina to develop, enhance and exploit the Sembakung Fields in South Kalimantan. Meanwhile, PPTL is the holder of TAC at the Tanjung Lontar and Sengkuang Fields and the Arahan-Banjarsari fields in South Sumatra. (Robert)