Andalas Energy and Power Plc - Update on Bunga Mas

Source Press Release
Company Andalas Energy and Power plc 
Tags Corporate Deals, Deals, Upstream Activities
Date December 27, 2018

Andalas Energy and Power PLC, is pleased to report that we have agreed with the vendor of the Bunga Mas PSC to extend the long stop date for satisfaction of the sale and purchase agreement conditions precedent to 15 February 2019 (originally announced on 29 August 2018).

We have agreed to extend the long stop date after consultations with the vendor and the Indonesian Government regarding the vendor’s request to vary the terms of the PSC by extending the exploration period and converting it to the new gross split regime.  These consultations have led us to conclude that there is a reasonable prospect of the extension being granted.

Simon Gorringe, CEO of Andalas Energy and Power PLC said, “I am pleased with the steady progress being made by the vendor towards receiving the regulatory consent for the licence extension on terms, including the conversion to gross split, that are acceptable to the vendor and Andalas.

“In our opinion the new gross split regime and the former regime can provide broadly similar outcomes for development projects such as Bunga Mas and therefore we would be satisfied with an extension under either regime.

“Bunga Mas PSC represents a huge opportunity for Andalas, it has near term production potential and longer term has up to five potential exploration targets each with multi-million barrel of oil potential, the exploration of which we believe could be financed in full or in part by the production from the first phase of the project development.

“We look forward to providing the market with an update on our acquisition of Bunga Mas PSC in due course.”

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd