GSS Secures Rights to Old Wells in Tembrul Area in Central Java
Singapore-listed GSS Energy Investment Holdings Ltd., a wholly-owned subsidiary of GSS Energy Ltd., announced Tuesday that it has entered into a sale and purchase agreement to sell its entire stake in all the issued and paid-up ordinary shares of Cepu Sakti Energy Pte Ltd. (CSE) to PT Megah Kharisma Lestari (MKL) for a consideration of $0.7 (SGD 1).
Under the agreement, MKL shall transfer its rights to all of the old wells in the Trembul area, Central Java, Indonesia, now held by CSE or its subsidiaries, to GSS for a consideration of $0.07 (IDR 1,000).
CSE’s unit PT Cepu Sakti Energy (PT CSE) was notified in July 2015 by Village Cooperative (Koperasi Unit Desa) and Sumber Pangan (KUD SP) that PT Pertamina EP (PEP) had halted oil production under the Old Wells Agreement effective Oct. 31, 2012 entered into between PEP and KUD SP, a move that rendered unnecessary PT CSE's services in managing old wells in Dandangilo-Wonocolo. KUD SP followed up by terminating the Cooperation Agreement with PT CSE March 25, 2013 to manage old wells at Dandangilo-Wonocolo and Ngrayong Fields in Kedewan-Bojonegoro, East Java.
GSS will now explore oil fields around the region for Kerja Sama Operasi (KSO) contracts following its sale of CSE.
“Following the disposal of CSE, our Group is very pleased to secure the old well rights to the Trembul region and would continue to restructure and enhance our oil and gas operations ... Our Group is working very closely with authorities in Indonesia to explore oil field projects with the aim of securing KSO contracts ... In addition, our Group would actively seek for other oil and gas opportunities in the region as well," GSS CEO Sydney Yeung said in the press release.
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