Cooper Energy Sells Indonesian Permits to Mandala Energy

Cooper Energy has signed agreements for the sale of its Indonesian exploration assets to Mandala Energy for consideration of $8.25 million.   

The sale, which is effective from 1 January 2016, is subject to the approval of the Government of Indonesia and is expected to complete within the current financial year, Cooper said.  The net cash proceeds are anticipated to be more than A$10 million at current exchange rates, after costs and Indonesian transfer taxes.   

Under the transaction signed in Jakarta on Wednesday, Mandala will acquire 100 percent of the Sumbagsel and Merangin III PSCs located in the South Sumatra Basin.  Cooper Energy will continue the divestment process for its 55 percent interest in the Tangai-Sukananti KSO production licence.  

“Although we consider the Merangin III and Sumbagsel PSCs to be very prospective, now is the right time for Cooper Energy to realise the value available for its Indonesian portfolio and to increase the focus we bring to our Eastern Australia projects,” company’s Managing Director, David Maxwell said.  

The sale is the first outcome of a process initiated by Cooper Energy in the December quarter to divest its Indonesian portfolio.   

The company will now seek to accelerate sale of the Tangai-Sukananti KSO.