PT Radiant Utama Interinsco Tbk (RUIS) today said two potential investors are interested to set up strategic alliance to develop oil and gas Bukit Barisan Block.
"Two potential investors have shown their appetite to develop Bukit Barisan Block," said Radiant's Corporate Secretary Coki Lubis as reported by Kontan daily yesterday.
According to him, they are a local investment company and offshore oil and gas company. Adding to that, Radiant Utama is considering two options to facilitate the cooperation such as issuing new shares. The potential investors could be standby buyers for Radiant Utama's rights issue. "The proceed will be utilized to develop Bukit Barisan Block," Coki said.
Radiant Utama bought Bukit Barisan via its subsidiary dubbed PT Radiant Bukit Barisan E&P (RBB) on November 13 2008 after a consortium of RBB and PC (SKR) International Ltd won the tender of South West Bukit Barisan Block, West Sumatra and Riau.
Radiant Utama controls 51% participating interest in the block and the remaining is owned by PC (SKR) International. RUIS requires US$15 million to develop the project. The potential reserves in Bukit Barisan is estimated to reach 120 million barrels of oil and 260 billion cubic feet of gas. RUIS expects to produce oil and gas in 2015, delaying from the initial plan.
Disclosure: No position at the stock mentioned above.
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