Australia's Cooper Energy announced Tuesday that it has signed an agreement to sell 55 percent interest in the Tangai-Sukananti KSO in South Sumatra Basin, Indonesia to a joint venture comprising Canada's ACL International Ltd. -- through its wholloy owned subsidiary Bow Energy International Holding Inc. -- and Singapore-based Lamara Energy Pte Ltd. for $4.3 million (AUD 5.9 million).
Under the deal, subject to regulatory and joint venture approvals, Cooper Energy received a deposit of $0.26 million and will collect another $3.4 million on completion July 29, with the remainder to be received through deferred payments and as receivables fall due.
The sale completes the Cooper Energy’s withdrawal from Indonesia -- where exploration assets were sold to Mandala Energy Investment Pte Ltd. earlier for $9.07 million -- as the company focuses on Australia, particularly on its Gippsland Basin gas projects.
“The efforts and technical judgement of our team in Indonesia delivered a 260 percent increase in proved and probable oil reserves in the KSO in our most recent reserves report. Production has been increased around 13 times from approximately 60 barrels of oil per day prior to being shut in under previous ownership to the current rate of approximately 800 barrels per day, with substantial upside from the development plans the team has prepared," Cooper Energy Managing Director David Maxwell said in the press release.
ACL Director Aqeel Virk said the acquisition will add to its existing Indonesian assets and be complementary with the firm's experience, while the synergy with Lamara further strengthens its operations in the country.
“Cooper Energy’s accomplishments with the KSO are well recognized and they have developed a positive relationship with the license holder, Pertamina. The existing business is in good standing in today’s oil price environment, and represents a solid base for growth,” Lamara Energy’s three Founding Directors, Will Rathvon, Bret Mattes and Rob Lemmey commented in the same press statement.
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