KrisEnergy Buys Stake in Block A Ache, Indonesia

KrisEnergy has agreed to acquire from Premier Oil Overseas its entire 41.6666% working interest in the Block A Aceh production sharing contract (PSC) in Indonesia where several gas condensate discoveries are expected to go into the development phase after completion of the acquisition, the company said in a statement on Tuesday.

The firm is acquiring the block stake by purchasing 100% of the issued share capital of Premier Oil Sumatra (North) for a total after-tax consideration of $40m.

Medco E&P Malaka is the operator of the PSC with a 41.6667% working interest while Japex Block A Ltd. holds the remaining 16.6667%.

Block A Aceh, located onshore Sumatra in the semi-autonomous region of Aceh, covers an area of 1,867 sq km and contains several gas condensate discoveries including the Alur Rambong, Alur Siwah and Julu Rayeu fields, which were approved for development in 2007.

First gas from Alur Rambong is anticipated in 2017. The block also contains the Matang gas discovery and Kuala Langsa gas discovery.

Best estimate contingent resources (2C) in the development pending category associated with the Alur Rambong, Alur Siwah and Julu Rayeu fields to the company’s working interest are 29.2 mmboe as at 31 December 2013 as assessed by Netherland, Sewell & Associates, Kris Energy said.