Cue Energy and Wirabuana sign exploration joint venture<\/p>\n
WELLINGTON (Reuter): Cue Energy Resources yesterday said it
\nhad negotiated a joint venture with the Wirabuana Group of
\nJakarta, Indonesia, which would undertake oil and gas exploration
\nwork in South Sumatra.<\/p>\n
Cue said in a statement that the joint venture had submitted
\ndetails of the venture to Pertamina, the Indonesian State Oil
\nCompany, in relation to the signing of a Production Sharing
\nContract (PSC) over the Tanjung Jabung area in South Sumatra.<\/p>\n
"The Wirabuana Group late last year emerged as the winner of
\nthe bid process for the block with a minimum exploration work
\nprogram of US$15.2 million encompassing 800 km of seismic and
\nthree exploration wells in the first three years of the
\ncontract," Cue said.<\/p>\n
"In the joint venture with the Wirabuana Group, Cue Energy
\nwill initially take on 40 percent of this commitment."<\/p>\n
Cue said the Tanjung Jabung Block covered an area of 8,350
\nsquare kilometers of the northern margin of the prolific South
\nSumatra Basin where approximately 140 oil and gas discoveries had
\nbeen made with recoverable oil reserves of two billion barrels
\nand gas reserves of around seven trillion cubic feet.<\/p>\n
It was expected that the formal granting of the Tanjung Jabung
\nPSC to the Wirabuana Group and Cue Energy would take place in
\nApril, 1997.<\/p>\n
"The PSC will be jointly operated with Cue Energy providing
\ntechnical and commercial management and the Wirabuana Group
\ncontributing staff and logistical support," Cue said.<\/p>\n
"Upon formal granting of the PSC Cue Energy will pay to the
\nWirabuana Group a cash consideration which is yet to be finalized
\nas well as the US$600,000 signature bonus to Pertamina."<\/p>\n
Subsequent expenses would be effectively split 60 percent
\nWirabuana Group:40 percent Cue Energy.<\/p>\n
Cue said to fund the acquisition and the exploration
\ncommitments, ANZ Securities had underwritten a placement of 40
\nmillion ordinary fully paid Cue shares at A$0.20 raising A$8.0
\nmillion for Cue Energy.<\/p>\n
"The National Provident Fund of Papua New Guinea has agreed to
\ntake 19 percent of this placement to maintain their current
\nrelative shareholding in the company. The placement is subject to
\nshareholder approval and granting of the PSC," Cue said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cue-energy-and-wirabuana-sign-exploration-joint-venture-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}