Energy buys RI gas fields

Energy buys RI gas fields

VANCOUVER (Dow Jones): Continental Energy Corp acquired two oil and natural gas exploration properties in Indonesia for about US$1.4 million cash and 1.9 million common shares.

The company said Wednesday in a press release that it bought the prospects by purchasing two related British Virgin Island holding companies, Apex (Bengara-II) Ltd and Apex (Yapen) Ltd, whose only assets are the Indonesian sites.

Continental bought Apex (Bengara-II) Ltd for $1.2 million cash and 850,000 shares, and its sister company, Apex (Yapen) Ltd, for $150,000 cash and 1 million shares.

Continental said Apex (Bengara-II) Ltd holds a 30-year production sharing contract with Pertamina, Indonesia's state oil company, for oil and natural gas exploration and production rights to the 1.2 million-acre Bengara-II contract area in the Tarakan Basin of Kalimantan.

Seismic data from Bengara-II indicates three to five geologic structures with "substantial" oil and natural gas potential, Continental said.