GCR buys RI oil stake

Sat, 03 May 1997 | Source: REUTERS

LONDON (Reuter): Gulf Canada Resources Ltd (GCR) said yesterday it was buying a 12 percent stake in an Indonesian production-sharing contract from Seafield Resources Plc.

The Gulf Canada acquisition is in the 3,500 sq km offshore Pangkah oil block off East Java.

Gulf Canada will pay Seafield by funding both companies' share of this year's seismic and overhead costs and 24 percent of two exploration wells planned for next year. Gulf said in a statement that the total cost of the two wells is estimated at US$2.4 million net to Gulf.

Upon completion of the acquisition -- subject to approval by Indonesian state oil company Pertamina and the other partners -- Seafield's interest will be halved to 12 percent. The operator is Premier Oil Plc with 40 percent while Amerada Hess Corp holds a 36 percent interest.

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