Vital Resources buys S. Sumatra small oilfields

Calgary-based junior oil, gas exploration firm Vital Resources Corp.announced Friday to have signed a Letter of Intent to buy the Ramok and Senabing Oil Fields Technical Assistance Contract (TAC) located in South Sumatra for US $13.6 million to be paid with cash and stock.

Ramok and Senabing oil fields were discovered by the Dutch (BPM) in the early 1900s and production was stopped during the colonial area.

Commercial production was restored to Senabing in 2001 and Ramok in 2005. Total current production is approximately 85 bbls/day, which is primarily from Senabing field.

Vital's team is currently developing an enhanced oil recovery and depletion strategy (waterflood) for the Ramok and Senabing oil fields. There are also strong indications that significant undeveloped reserves exist within these fields, complementing the existing reserves, as well as potential further field extensions, the company said. (alex)