Salamander Energy Plc (SMDR.L) said it has agreed to acquire the full authorised share capital of Mitra Energia Bangkanai Limited, which holds a 5 percent interest in the Bangkanai PSC, from a subsidiary of Sound Oil plc.
When the transaction is complete, Salamander will hold an 85 percent interest in the licence. The deal will add around 1.2 MMboe of proved reserves and 1.6 MMboe of contingent resources net to the group.
The Bangkanai PSC is located onshore in central Kalimantan, Indonesia. It contains the Kerendan gas field which is undergoing development. To date, 122.6 Bcf has been committed for sale under a Gas Sales Agreement, or GSA, with PLN and a further 160 Bcf of resource is identified in the field for additional commercialisation. The field is expected to be on stream in 2014.
The consideration for the acquisition will include an initial cash payment of $4.5 million and a further $1.1 million cash payment conditional on commencement of gas production and the signature of a GSA for commercialisation of additional resources.
It will also include a contingent payment of $1.5 million from revenues associated with production from a future discovery in the PSC.
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