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.