SPE says Oilex no longer has interest in Kampar block

Sumatera Persada Energy (SPE), the operator of Kampar PSC onshore Central Sumatra said that that Australian oil, gas firm Oilex Ltd. no longer has a 45 percent interest in the PSC following failure of the ASX-listed company to fulfill its commitment.

?Oilex lost its 45 percent working interest in West Kampar because Oilex failed to finance its commitment of an US$8 million on seismic survey work scheduled to be started in March 2009 and approved by (upstream oil, gas authority) BPMIGAS. The Farm Out agreement spells out clearly this requirement and conditions,? SPE President John Karamoy told Petromindo.Com on Wednesday.

Oilex acquired 45 percent interest in West Kampar block on May 2007 by refunding certain past costs and funding the drilling of the Pendalian-3 exploration/appraisal well. Oilex later in August 2008 signed deal to increase interest in the block by another 15 percent by assuming certain operational costs for SPE and a phased cash payment. However, on January 19, 2009, Oilex said it had decided to terminate the deal to acquire an additional 15 percent stake at West Kampar and said SPE was required to reimburse the funds advanced by Oilex.

Oilex said on April 30 2009 that Oilex has increased its stake at West Kampar by another 22.5 percent to 67.5 percent after SPE failed to pay US$3.5 million plus interests and costs to Oilex.

Karamoy, however, dismissed Oilex claim of interest transfer.

?PT Asiabumi Petroleo (AP), the shareholder of SPE has guaranteed payment of SPE?s debt to Oilex of $3.5 million and is using its best efforts to ensure that repayment will soon be made,? Karamoy said, acknowledging that fact that SPE has financial obligation to Oilex. According to Karamoy AP has put its 41 percent shares in SPE and 22.5 percent working interest in West Kampar as collateral for the US$3.5 million debt.

?Oilex has lost its 45 percent interest in Kampar since March 14, 2009 pursuant to the notification contained in SPE?s letter to Oilex on the same date, a copy of which was sent to BPMIGAS for information on March 16, 2009,? he added. SPE has conveyed request to BPMIGAS to reinstate SPE?s 45 percent interest in West Kampar, he said.

Kampar PSC has Pendalian oil discovery, which is currently being brought to produce up to 6,000 barrels when fully developed. (godang)