Neon Energy withdraws from Tanjung Aru PSC

KrisEnergy Ltd, an independent upstream oil and gas company, announced that Neon Energy will be required to withdraw from the Tanjung Aru production sharing contract, offshore Kalimantan in Indonesia.

Under the PSC’s joint operating agreement (“JOA”) KrisEnergy and Neon Energy entered into a deed of carry with Natuna to pay a portion, up to an amount of US$1,000,000 relating to a 502 sq km 3D broadband seismic acquisition program completed in the Tanjung Aru PSC in April 2014, of Natuna’s share of costs until December 2016. KrisEnergy therefore assumed the full costs of Neon Energy’s Default Amount.

KrisEnergy holds a 43% working interest in the Tanjung Aru PSC, with Neon Energy holding 42% and the remaining 15% held by Natuna Ventures Pte Ltd.

Neon Energy had 20 days to repay the amount and now they will be required to withdraw from the contract area, pursuant to the JOA. Neon Energy’s 42% working interest will accordingly be transferred entirely to KrisEnergy and the company’s working interest will increase to 85%.

Richard Lorentz, Director Business development, commented: “We are entering an exciting phase of exploration in the Tanjung Aru block where there are two previous gas discoveries for which we carry contingent resources. We have just completed a 3D broadband seismic survey and once the data is processed, we have completed our interpretation and mapped the additional prospects and leads, we will likely look for partners to join us in the drilling phase.”

Neon Energy remains responsible for the amount, which is due to KrisEnergy.

The Tanjung Aru PSC covers 4,191 sq km over the offshore southern margin of the Kutai Basin in the Makassar Strait. Water depths in the area range from 20 metres to more than 1,000 metres.

[mappress]

May 05, 2014