Xstate acquires Langsa TAC
Thursday, February 14 2013 - 08:47 AM WIB
ASX-listed Xstate Resources Limited announced it has signed a memorandum of understanding to acquire 100 percent of privately owned Blue Sky Langsa Ltd effective January 1, 2013.
By the transaction, Xstate will also acquire 100% of the Langsa Technical Assistance Contract (TAC) with state owned oil and gas firm PT Pertamina, located in 70 to 100 meters of water depth, 50 kilometers offshore North Sumatra.
The Langsa TAC includes the L and H oil fields and related oil field equipment inventory. Production is from limestone reservoir rocks about 1600 meters below the sea surface.
These fields have been developed with 6 subsea wells, and are currently producing profitably at a rate of approximately 340 barrels of oil per day and zero water-cut from one well via a dedicated leased floating production and storage and offloading (FPSO) vessel. The remaining development wells are shut-in and are workover candidates to recover additional oil.
Editing by Dadan Wijaksana