Sebana is a company incorporated in the British Virgin Islands and is wholly owned by Petroland. Sebana’s primary asset is a 90% working interest in the Bulu Production Sharing Contract offshore East Java. Sebana is the operator of the Bulu PSC.
Under the terms of the MOU, Pearl will pay US $1.5 million to Petroland for Sebana and bear the cost of the bonus payment obligations to the Indonesian government required under the Bulu PSC, up to a maximum amount of US$3 million. In addition, and simultaneously with the completion of the proposed acquisition, Pearl will transfer 5% working interest in the Bulu PSC to PT Satria Wijaya Kusuma. SWK also will have the option to acquire an additional 5% working interest in the Bulu PSC from Pearl in the event of a discovery.
Pearl is currently conducting due diligence on Sebana, SWK and the Bulu PSC and negotiating the definitive documentation, which will provide in detail the terms and conditions set out in the MOU in respect of the proposed acquisition.
“The proposed Bulu transaction will add to our exploration portfolio and provides Pearl with exposure to oil and gas prospects in East Java. The area off East Java is well understood by our technical team and there are a number of structures which have the potential to contain both oil and gas,” said Richard Lorentz, Pearl’s Chief Business Development Manager.
The Bulu PSC covers 3,494.6 sq km and is located off the northeast coast of East Java in the East Java Sea. Upon completion of the proposed acquisition, Pearlwill operate the Bulu PSC. Currently, Sebana holds a 90% working interest in the Bulu PSC and the remaining 10% is held by PT Satria Energindo. Satria is a company incorporated in Indonesia and is the single largest shareholder in Petroland.
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