Continental and GeoPetro are also partners in the Bengara-II Production Sharing Contract area in East Kalimantan, Indonesia, and have agreed to apply most of the funds from the Yapen sale to exploration and development drilling in Bengara-II. Continental owns 60% of the Bengara-II PSC.
Proceeds to Continental were $3,600,000. No broker's or finder's fees were incurred on this transaction.
Mr. Richard L. McAdoo, Continental's chairman and president said, "We are pleased that this transaction has gone so smoothly, and wish Nations well in their exploration of the Yapen Block. The funds received will allow us to proceed with our planned drilling in the Bengara-II Block, where we have four exploration prospects already approved for drilling in the oil prone southern part of the block, and a plan of development in progress for the Makapan Gas Field in the northern part of the block."
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