Saga sells Jambi block

Saga sells Jambi block

OSLO (Dow Jones): Norwegian upstream oil company Saga
Petroleum ASA said Thursday it has sold its stake in the Jambi
Merang block in Indonesia to YPF Indonesia Ltd. and Amerada Hess
Limited for NOK133 million (US$17.7 million).

The sale is subject to approval from Indonesian authorities
and marks an end to Saga's operations in the country, as the
company has said it wants to concentrate on other regions.

Saga had originally planned to sell its share in the Jambi
Merang block to Cue Energy Resources N.L. in May last year for
$27 million, but that company declined to go through with the
transaction.

Saga as since sued Cue Energy for its losses including accrued
investments and operating costs.

Founded in 1972, Saga Petroleum ASA is the largest privately-
owned Norwegian offshore oil and gas group. Saga now concentrates
exclusively on upstream oil and gas activities. Saga is operator
of four fields and co-owner of 25 fields.