KrisEnergy in Farm-out Agreement for Vietnam Block 115/09

Source Company Press Release
Company KrisEnergy Ltd.
Tags Country: Vietnam, M&A: Asset Deal, Deals, Upstream: Upstream News
Date February 14, 2020

KrisEnergy Ltd. (“KrisEnergy” or the “Company”, and together with its subsidiaries, the “Group”), an upstream oil and gas company, announces that its wholly-owned subsidiary, KrisEnergy (Vietnam 115) Ltd., has entered into a farm-out agreement with a major international oil and gas company for the transfer of its entire 100% working interest in the Block 115/09 production sharing contract, offshore Vietnam for a nominal cash consideration.

The consideration was arrived at taking into account that the transfer of the exploration block reduces the Company’s liabilities and mandatory work commitments comprising a 3D seismic acquisition program of at least 850 sq. km along with processing of the data and the drilling of one exploration well. The Board believes it is more prudent to allocate KrisEnergy’s limited capital to funding near-term development, in particular the development of the Apsara oil field in Cambodia Block A. The transfer is in the Group’s ordinary course of business and does not change the Group’s risk profile.

The transfer of Block 115/09 working interest and operatorship is subject to a number of conditions including approvals from the relevant government authorities. The long stop date for the farm-out agreement is 30 June 2020.

Further details of the transfer will be announced by the Company as and when necessary. Shareholders, noteholders and potential investors of the Company should exercise caution when dealing in the Company’s securities. Stakeholders and potential investors who are in doubt as to the action they should take should consult their stockbrokers, bank managers, solicitors, accountants or other professional advisors.

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