Xped, Bakri execute term sheet for sale of Sokoria geothermal project

By Romel S. Gurky

ASX-listed Xped Limited announced on Friday that it has executed a binding Term Sheet along with its JV partner PT Bakrie Power to sell down its stake in the project to PT Dalle Geotermal Energy and/or affiliates

Dalle is part of an Indonesian group of companies with a focus in the energy sector and currently manages around 2,820 MW of power plants in Indonesia. Dalle wishes to acquire up to 95 percent of the issued capital of PT Sokoria Geothermal Indonesia (SGI) through payment of up to US$2.885 million for incurred costs related to the project, with Xped due to receive up to $1.3 million. PT Energy Management Indonesia will retain its existing 2 percent, and the remaining 3 percent split between Bakrie (1.65 percent) and Xped (1.35 percent) as free‐carry shareholding in the company.

Following the execution of the Term Sheet, the parties will work towards completing a Conditional Sale and Purchase Agreement (CSPA) by end of May. Once the CSPA has been satisfied, Dalle will take control for all ongoing and related project costs and Xped and Bakrie will be free of all incurring costs.

?We are pleased to be working with Dalle Energy to advance the Sokoria Geothermal project.? Says Xped joint CEO, Athan Lekkas. ?Both Xped (formerly Raya Group) and Bakrie had been seeking a strategic partner in this project to help fund the project development costs and welcome the opportunity and timing it brings to Xped as it transitions its business. .? He added.

In October 2014, SGI signed a power purchase agreement (PPA) for the 30 MW Sokoria geothermal power plant project on Flores Island with state owned electricity firm PT Perusahaan Listrik Negara (PLN)

Editing Johannes Simbolon