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Transfer of Neon Energy’s interest in Tanjung Aru to KrisEnergy approved

JAKARTA (rambuenergy.com) – KrisEnergy Ltd, a Singapore-based independent upstream oil and gas company, said the Indonesian Special Task Force for Upstream Oil and Gas Business (SKK Migas) has in August this year approved approved the transfer of Neon Energy’s 42.0 percent working interest in the Tanjung Aru PSC to KrisEnergy.

The transfer was a non-cash transaction, which was recorded as a gain on transfer, KrisEnergy said in a statement.

Following the approval, KrisEnergy now holds an 85.0 percent operated working interest in the Tanjung Aru PSC, where there are no outstanding firm well commitments. The remaining 15 percent stake owned by Natuna.

Tanjung Aru PSC is located in offshore Kalimantan. The block’s name has been changed to Bala-Balakang Block following the demand of the West Sulawesi provincial government’s request.

The transfer of interest was triggered after Neon Energy failed to serve its outstanding dues.

KrisEnergy, as operator of Tanjung Aru PSC, issued a default notice April 7, 2014 to Neon Energy over the latter’s outstanding due and unpaid cash calls amounting to $1 million arising from a 193.8 square miles (502 square kilometers) 3D broadband seismic acquisition program that was completed in the block in the same month.

Pursuant to the default and subsequent withdrawal of Neon Energy, a deed of assignment was executed between KrisEnergy, Neon Energy and Natuna Ventures Pte Ltd. to formalize and effect the transfer of Neon Energy’s 42 percent working interest to KrisEnergy.

Separately, Neon Energy disclosed that its formal offer to pay all outstanding cash calls pertaining to the recently completed seismic program in return for KrisEnergy agreeing to rescind the Notice of Withdrawal issued May 5 was declined by the operator.

KrisEnergy has chosen not to accept the offer, and consequently Neon has executed a Deed of Assignment to effect a transfer of the Company’s 42 percent working interest in the Tanjung Aru PSC to KrisEnergy. (*)

 

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