Australia's Enhanced Oil & Gas Recovery Ltd. (EOR) announced Monday that Powgen Mining Pty Ltd., a wholly owned subsidiary of EOR has entered into a confidentiality agreement with P.T. Pandawa Prima Lestari (Pandawa) with a view to negotiating a joint venture and/or farm-in arrangement. Pandawa holds a Production Sharing Contract and is Operator of the Wain Block in the Kutai Basin, East Kalimantan, Indonesia which has substantial reserves of oil and gas adjacent to Center Energy Petroleum Ltd.'s (CEP) Wailawai Oil & Gas Project.
As previously announced EOR and the shareholders of CEP have entered into a share purchase agreement pursuant to which EOR is to acquire CEP subject to the satisfaction of certain conditions precedent, including EOR re-complying with the requirements of Chapter 1 and 2 of the ASX Listing Rules.
The Kutai Basin is the second most prolific on share hydrocarbon area in Indonesia having been a long time oil and gas producer and having calculated economic value. The southern section of the Kutai Basin has a number of defined oil and gas targets and prospects to be drilled.
The Wain Block of Pandawa is adjacent to CEP's Wailawain Oil & Gas Project.
EOR will update the market as to the outcome of the abovementioned negotiations on completion.
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