Interra Resources Limited's fully-owned subsidiary Goldwater Indonesia Inc. entered into a conditional sale and purchase agreement Thursday with PT Benakat Integra TBK (BI), PT Benakat Oil (BO) and PT Bangkudulis Patina Petroleum (BPP) to acquire an indirect interest of around 20 percent in Indonesia's PT Benakat Barat Petroleum (BBP) for $7.36 million, the company said in a filing to Singapore Exchange Thursday.
BBP currently holds a 100 percent interest in the Benakat Barat KSO in South Sumatra, Indonesia through a March 16, 2009 operation cooperation agreement inked with PT Pertamina EP, a subsidiary of Indonesia's state-owned oil company PT Pertamina.
Under the agreement, BBP has the "rights and obligations to exploit, develop and explore for hydrocarbons in the Benakat Barat field in South Sumatra, Indonesia," Interra said in a press release.
Interra said the acquisition was part of its plan to expand its current portfolio of oil and gas assets in Indonesia. The indirect acquistion of 20 percent interest of BBP will increase the company's existing reserves.
The firm "believes that it is a strategic investment because not only is the Benakat Barat field adjacent to the Tanjung Miring Timur field owned by the Company, it also produces oil from the same geological structures and formations as the Tanjung Miring Timur field."
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