Update-Borneo Oil acquires Indonesian oil, gas project

Malaysian firm Borneo Oil berhad announced on Tuesday that its subsidiary has on July 2 entered into a deal to acquire all the issued shares of PT Pelangi Haurgeulis Resources, a company that operates Haurgeulis TAC in West Java for a total cash purchase of USD9 million.

Payment would be settled four months after the deal was signed.

The TAC will expire in 2015.

The Haurgeulis field covers an onshore area of 14 sq km and is located in the PERTAMINA Unit EP-III working area, West Java, approximately 160km east from Jakarta. Geologically, the Haurgeulis field structure is situated within the North West Java Basin, which is one of the most prolific hydrocarbon basins in Indonesia.

Presently there is only one production gas well in the Haurgeulis Field with a daily production of approximately 1.5 million standard cubic feet per day (MMSCFD). The gas is currently sold to PERTAMINA.

The Haurgeulis field is considered as a mature producing asset as it is currently producing gas with potential for oil production and enhanced gas production.(denny)