Business
Agreement to Farm-in to Indonesian Gas Project
Agreement to Farm-in to Indonesian Gas Project.
About this update from Beacon Energy Plc
[{"type":"text","content":"\n \nAndalas Energy and Power Plc\n\n (“Andalas†or \"ADL\" or the \"Company\")\n\n3 February 2016\n\nADL signs heads of agreement to farm-in to Indonesian gas project\n\nAndalas Energy and Power Plc is pleased to announce that it has signed a non-binding heads of agreement to farm-in to the Technical Assistance Contract (‘TAC’) covering the Tuba Obi East oil and gas concession (‘TOE’) (“the concessionâ€) in Jambi province, Sumatra.\n\nThe proposed transaction would constitute a reverse takeover within the meaning of the AIM Rules for Companies.\n\nHighlights:\n\n\nHeads of agreement signed to acquire 30% working interest in TOE TAC via a farm-in\n\nTOE is a ‘beach head’ for Andalas into the Indonesian gas sector\n\nAny future gas production from the concession may support either: \n\n\nGas export with the project located close to a major export route; or\n\nGas-to-power being located in an area where a significant shortfall in energy generation exists\n\n\n\nFarm-in via execution of a US$1.075 million work programme. Bonus payment of US$500k on renewal of the concession\n\nWork programme to be jointly operated by Andalas and includes technical studies and the drilling and testing of one appraisal well which would be put into production on success\n\nSubject to well results, further development studies will be undertaken\n\nAndalas’ gas and power study shows strong market for gas at high prices\n\nTransaction is a reverse takeover and the Company is preparing an admission document seeking shareholder approval which it will publish in due course\n\n\nAndalas CEO, Mr David Whitby, said, “A farm in to the TOE concession in Indonesia will give us a ‘beach head’ to build a significant gas business in the country. This is the result of many months’ work during 2015 by our team and our extensive network of Indonesian gas and power industry experts. That work culminated in a comprehensive study of the Indonesian gas and power sector, from reservoir sand-face to gas burner tip, which I believe gives us a significant competitive advantage in realising the value of TOE and future blocks currently under evaluation.\n\n“TOE is ideally located adjacent to the major Sumatran gas pipeline to Duri and Singapore, and close to the provincial capital city of Jambi which is in critical need of po...