Singapore-listed company Interra Resources Limited, through its wholly-owned subsidiary, Goldwater TMT Pte Ltd, has entered into an assignment agreement with PT Retco Prima Energy on 20 June 2011 to acquire Retco Energy’s remaining 30% participating interest in the Tanjung Miring Timur Technical Assistance Contract (TAC) for an aggregate purchase consideration of US$6.9 million in cash.
In a disclosure announcement, Goldwater will partly fund the acquition from the balance of the net proceeds of approximately S$4.7 million raised from the placement completed on 4 April 2011 and the remaining portion from existing funds on hand.
The contract area under the Tanjung Miring TAC covers an area of approximately 61 km2 and is located in South Sumatra, Indonesia, around 30 kilometres southeast of Prabumulih and about 120 kilometres southwest of Palembang. During 2010, the total gross production of the field was 118,402 barrels of oil. Prior to the completion of the Assignment Agreement and as at the date of this announcement, Goldwater owned 70% participating interest in the Tanjung Miring TAC.
Upon completion of the takeover, Goldwater will effectively own 100% participating interest in Tanjung Miring TAC. The TAC with PT Pertamina EP commenced on 17 December 1996 for a term of 20 years.
Retco Energy is currently the operator of the oil field and upon completion of the agreement, Goldwater will assume the role of operator of the Tanjung Miring field
The Acquisition is conditional upon the obtaining of approvals from the state-owned Perusahaan Pertambangan Minyak dan Gas Bumi Negara as well as the other relevant Indonesian regulatory authorities. The Acquisition will enable Interra Resources and its subsidiaries to increase oil production and to facilitate future expansion in this area of the business.
Disclosure: No position at the stock mentioned above.
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