WestSide, Bumi sign HoA to develop CSG in East Kalimantan
Tuesday, May 15 2007 - 05:53 AM WIB
Brisbane-based coal seam gas company WestSide Corporation Limited announced that it has signed heads of agreement on Tuesday with Indonesia's largest coal mining company PT Bumi Resources Tbk in a coal seam gas (CSG) joint venture.
The joint venture will evaluate and develop CSG prospects in the concession of Bumi’s East Kalimantan-based unit PT Kaltim Prima Coal (KPC), the company said in statement filed with the Australian Stock Exchange on Tuesday
The concession lies in 90,700 hectares of lands in Sangatta and Bengalon areas of East Kalimantan and is estimated to hold more than 4 billion tons of coal in several well defined deposits.
WestSide expects to hold a 50 percent interest in the CSG operations, with both contributing equally to development and production costs. The interim and final ownership structure will be determined by the requirements of Indonesia’s developing legislative framework in this area, the company added.
Bumi holds 27.5 percent of WestSide's shares. (denny)