Pearl adds Bulu block in Southeast Asian expansion drive
(Asia-Pacific) - Singapore-listed Pearl Energy Ltd. continues its aggressive expansion in Southeast Asia with the takeover of 90% stake in the offshore Bulu production sharing contract (PSC) block in Indonesia following the signing of a sale and purchase agreement to acquire 100% of Sebana Ltd. from PT Petroland Energi.
Pearl has scheduled a 2,000-sq km 2D seismic acquisition program in the 3,494.6 sq km Bulu PSC at the end of December and a two-exploration-well program in 2006.
Pearl said it would pay $1.5 million to Petroland for Sebana and pay up to a $3 million bonus to the Indonesian government as required under the Bulu PSC.
Sebana, incorporated in the British Virgin Islands, had a 90% working interest in the Bulu PSC in the East Java Sea.
The deal also involves the transfer of 5% working interest in the Bulu PSC to PT Satria Wijaya Kusuma (SWK) with a further option of transferring 5% interest if the acreage yields hydrocarbon discovery.
The acquisition was done on a willing buyer - willing seller basis with Petroland, one of the shareholders of which are now a partner in the SWK, Pearl said in a note to the Singapore Exchange on November 25.
PT Satria Energindo, a company incorporated in Indonesia and the single largest shareholder in Petroland, holds the other 10% of Bulu PSC.
11/29/05