Interra Resources has announced that its fully-owned subsidiary, Goldwater Indonesia (GII), has entered into a conditional sale and purchase agreement (CSPA) with PT Benakat Integra (BI), PT Benakat Oil (BO) and PT Bangkudulis Patina Petroleum ('BPP'), for the proposed acquisition by GII of 71,031,024 ordinary and fully paid-up shares in BO, which translates into an indirect holding of 20% of PT Benakat Barat Petroleum (BBP), at the purchase price of US$7,358,313.
BBP is a limited liability company incorporated under the laws of Indonesia. Pursuant to an operations cooperation agreement (the Benakat Barat KSO) entered into between BBP and PT Pertamina EP on 16 March 2009, BBP holds an undivided 100% interest in the Benakat Barat KSO and has the rights and obligations to exploit, develop and explore for hydrocarbons in the Benakat Barat field in South Sumatra, Indonesia.
Currently, BO’s shareholders are BI (99.99%) and BPP (0.01%). BO owns 97.87% of the issued share capital of II, which in turn directly owns 94% of the issued share capital of BBP.
Rationale for the proposed acquisition
The Company wishes to expand its current portfolio of oil and gas assets in Indonesia through the Proposed Acquisition. Upon Completion, the Company through GII, will gain indirect control of 20% of BBP through the acquisition of the Sale Shares.
The indirect acquisition of 20% of BBP will increase the Company’s existing reserves. In addition, the Company believes that it is a strategic investment because not only is the Benakat Barat field adjacent to the Tanjung Miring Timur field owned by the Company, it also produces oil from the same geological structures and formations as the Tanjung Miring Timur field.
