South Sea Energy signs E. Kalimantan CBM deal

Houston-based junior energy firm South Sea Energy Corp. announced on MOnday it has signed a non-binding Letter Of Intent (LOI) with PT Yasa Summa Energy to jointly identify and acquire additional coal bed methane (CBM) projects in East Kalimantan.

South Sea and PT Yasa intend to sign a definitive agreement outlying the terms of their joint effort in the coming weeks, which will include all CBM prospects in an expanded area of mutual interest that covers all the prospective basins in East Kalimantan, the company said.

South Sea is currently working toward signing a definitive agreement to acquire an interest in a joint venture CBM project located in East Kalimantan. Upon closing of the acquisition, South Sea would have the rights to participate in a joint venture encompassing a 1,200 km2 exploration and development block with PT Ephindo, an affiliate of PT Yasa, the company said.

PT Yasa is a wholly owned subsidiary of PT Energi Pasir Hitam Indonesia (PT Ephindo), an Indonesia energy company established and led by Indonesian senior executives. (alex)