Cue cancels Saga deal

Thu, 16 Apr 1998, 00:00 WIB | Source: REUTERS

OSLO (Reuters): Saga Petroleum ASA said yesterday that Cue
Energy Resources NL of New Zealand had pulled out of a deal to
buy Saga's 50 percent stake in the Jambi Merang oil prospect in
Indonesia.

Saga said it disputed Cue Energy's right to withdraw from the
agreement and was considering legal action.

Cue agreed in May to buy Saga's stake in the block for US$27
million.

Saga said that outside of the sales price, accrued investments
and operating costs amounted to an additional $10 million.

"Cue has paid a non-refundable deposit of $5 million, and
accordingly, the total amount due to Saga is $32 million,"
Norway's largest listed oil company said in a statement.

The net book value of Saga's interest in the Jambi Merang
block is $22 million.

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