Tracer ventures Indonesia

Tracer ventures Indonesia

VANCOUVER (Dow Jones): Tracer Petroleum Corp. agreed to
acquire a 80 percent stake in the Sungai Gelam A, B and D
Technical Assistance Contract in South Sumatra, Indonesia, for a
US$1 million interest-free note payable in two years and 125,000
shares.

Tracer agreed to buy the stake from Pertamina of Indonesia.

In a press release Wednesday, Tracer said it will also pay an
additional amount equal to $1 a barrel of proved reserves in
excess of 2 million barrels.

Under the proposed transaction, Tracer will spend a minimum of
$2 million over a two-year period on the oil field.

The Technical Assistance Contract covers an established but
underdeveloped field which has produced 230,000 barrels from the
Air Benekat Formation since 1958.

There are six wells on the contract areas and one well is
currently producing about 44 barrels of light, low paraffinic oil
a day.

Tracer is an exploration and development company with
operations in Indonesia and Canada.