March 24:
Artist & Entertainment Group progresses acquisition of Indonesian oil and gas project
Source:http://www.proactiveinvestors.com.au/companies/news/53860/artist-entertainment-group-progresses-acquisition-of-indonesian-oil-and-gas-project-53860.html?
Artist & Entertainment Group progresses acquisition of Indonesian oil and gas project
Artist & Entertainment Group (ASX: AEM) has advised that Centre Energy Petroleum, which it is proposing to acquire, is close to completing its acquisition of a majority interest in the Wailawi Oil and Gas Project in East Kalimantan, Indonesia.
Centre has satisfied all conditions precedent to the release of the Cooperation Agreement by Indonesian regulator SKK Migas including the payment of the US$200,000 signing fee and the US$1.5 million performance guarantee.
It is now seeking the issue of joint venture partner Perusda’s written consent to the assignment of Perusda’s participating interest in the Cooperation Agreement to their joint venture company.
AEM is proposing to acquire 100% of Centre following the latter’s acquisition of the interest in Wailawi subject to an extraordinary general meeting to be held to obtain shareholder approval for:
- The acquisition of CEP for A$12.8 million, through issue of shares;
- Consolidation of AEM shares to A$0.20 per share;
- Issue of a prospectus to raise a minimum of A$3.5 million and a maximum of A$4.5 million to fund development and exploration; and
- Change of the company name to Enhanced Oil and Gas Recovery Limited (ASX code EOR).
The Wailawi Project was discovered in 1975 and brought into production in 1979 producing gas from just four wells, with peak production reaching 18 million cubic feet of gas per day in 1985.
An additional two more wells were drilled in 1986 with production continuing until 1999.
However the low gas and oil prices brought about by the Asian financial crisis of the late 1990s resulted in the project being placed on care and maintenance and it wasn’t until October 2005 that the field resumed production after Perusda reached a Production Service Agreement with BP Migas.
Centre has satisfied all conditions precedent to the release of the Cooperation Agreement by Indonesian regulator SKK Migas including the payment of the US$200,000 signing fee and the US$1.5 million performance guarantee.
It is now seeking the issue of joint venture partner Perusda’s written consent to the assignment of Perusda’s participating interest in the Cooperation Agreement to their joint venture company.
AEM is proposing to acquire 100% of Centre following the latter’s acquisition of the interest in Wailawi subject to an extraordinary general meeting to be held to obtain shareholder approval for:
- The acquisition of CEP for A$12.8 million, through issue of shares;
- Consolidation of AEM shares to A$0.20 per share;
- Issue of a prospectus to raise a minimum of A$3.5 million and a maximum of A$4.5 million to fund development and exploration; and
- Change of the company name to Enhanced Oil and Gas Recovery Limited (ASX code EOR).
The Wailawi Project was discovered in 1975 and brought into production in 1979 producing gas from just four wells, with peak production reaching 18 million cubic feet of gas per day in 1985.
An additional two more wells were drilled in 1986 with production continuing until 1999.
However the low gas and oil prices brought about by the Asian financial crisis of the late 1990s resulted in the project being placed on care and maintenance and it wasn’t until October 2005 that the field resumed production after Perusda reached a Production Service Agreement with BP Migas.
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Source:http://www.proactiveinvestors.com.au/companies/news/53860/artist-entertainment-group-progresses-acquisition-of-indonesian-oil-and-gas-project-53860.html?
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