Carmanah buys Camar field

Carmanah buys Camar field

CALGARY (Dow Jones): Carmanah Resources Ltd. said its GFB Resources (Java) Ltd. unit has now completed the purchase of another 16 percent interest in the Bawean production sharing contract and Camar field in Indonesia, bringing its interest to 100 percent.

In a news release, the company said the stake was purchased from Stirling Resources NL, effective Sept. 1.

The consideration paid included debt forgiveness of $5.5 million owed to Carmanah by Stirling, $500,000 in deferred payments and the issuance to Stirling of 1.3 million Carmanah common shares from treasury.

As a result of the transaction, Carmanah said it now has 41.8 million common shares outstanding and has increased its stake in Camar reserves and production by 19 percent.

Carmanah is an oil producer.