CBM Asia Ups Stake in Sekayu PSC (Indonesia)

CBM Asia Ups Stake in Sekayu PSC

CBM Asia announced that it has entered into a settlement deed to increase its participating interest in the Sekayu production sharing contract for the 583.49 km2 Sekayu block in the South Sumatra Basin of Indonesia to 26%.

Currently, the Sekayu PSC is held 50% by a consortium of shareholders through South Sumatra Energy (SSE) and 50% by PT Medco CBM Sekayu, as operator.

Under its original letter of intent, the Company acquired the right to earn, indirectly through SSE, a 12% participating interest in the Sekayu PSC (with the exclusive right to provide financing for up to an additional 12% participating interest) from certain arm’s length vendors in consideration for US$1,000,000 cash , of which US$730,000 was paid on December 14, 2009, and exploration expenditures totaling US$3,243,500.

Under the terms of the Deed, the Vendors have agreed to relinquish and transfer all of their interest in SSE and the Sekayu PSC to the remaining shareholders of SSE including the Company and Ephindo Sekayu CBM in exchange for, inter alia, the Company paying the Vendors the sum of C$75,000 in full and final settlement of the Cash Payment and assuming all of the Vendors’ obligations under the underlying participation agreement between the Vendors and Ephindo. Ephindo, in turn, will transfer all of its interest in SSE to the Company in exchange for a direct 21.5% participating interest in the Sekayu PSC. Upon completion of the transactions contemplated in the Deed, the Sekayu PSC will be beneficially owned as follows:


CBM Asia (indirectly through SSE)               –           26.0%

Ephindo                                                               –           21.5%

Far East Methane LLC (FEM)                        –             2.5%

PT Medco CBM Sekayu                                    –           50.0%

LNG World News Staff, May 27, 2012

Share this article

Follow LNG World News

Events>

<< Sep 2016 >>
MTWTFSS
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 1 2

The 7th Annual Floating LNG USA 2016

The 7th Annual Floating LNG USA 2016 will bring together over 65 speakers from every part of the FLNG value chain…

read more >

The 2nd Annual South Africa: Gas Options

The 2nd Annual South Africa: Gas Options meeting taking place on 3rd– 5th October at The Westin Cape Town hotel…

read more >

Gas to Liquids

The volatile oil price has had a dramatic impact on the Gas to Liquids market and some large-scale projects’ operators have struggled to adapt to this unsteady landscape. Over the last 12 months, we have witnessed a few promising projects halt or even shut down altogether. However, whilst some doors have had to close, other doors are opening with interesting emerging markets on the new GTL field. A few companies have discovered ways to significantly reduce operating costs and prove to be commercially viable despite the current economic climate.

Against this backdrop, SMi’s 19th annual Gas to Liquids conference will discuss how GTL companies can work with the tumbling oil price and how they can build robust strategies and create effective alternative solutions to enable them to weather the storm. The programme will have a special focus on small-scale GTL projects, giving you the chance to hear first-hand success stories from leading GTL operators. The two-day event will provide the ideal platform for experts to discuss with peers what companies need in place in order to overcome today’s challenges, with leading industry figures dissecting cutting edge topics, including project financing, marketing of GTL projects and innovative alternative applications of GTL plants.

For more information and to register online, visit: www.gas-to-liquids.co.uk

read more >

The Rio Oil & Gas Conference 2016

Rio Oil & Gas 2016 will address topics from energy efficiency to sustainable Oil & Gas industry…

read more >