Signs Tuba Obi East gas project farm-in agreement

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[{"type":"text","content":"\n \n08 March 2016\n\nAndalas Energy and Power Plc\n\n(“ADL” or the “Company”)\n\nSigns Tuba Obi East gas project farm-in agreement\n\nAndalas Energy and Power Plc, the AIM listed investment company, is pleased to announce that it has conditionally entered into a farm-in agreement for the Tuba Obi East (“TOE”) Technical Assistance Contract (“TAC”) (“the concession”), which is located in the South Sumatran basin approximately 30km north-west of Jambi city in Jambi province, Sumatra.\n\nHighlights:\n\n\nADL to acquire 30% working interest in TOE TAC via a farm-in;\n\nTOE is the entry point for Andalas into the profitable Indonesian gas and power 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 power generation exists;\n\n\n\nFarm-in via execution of a US$1.075 million work programme;\n\nWork programme comprises technical studies and the drilling and testing of one well which would be put into production on success;\n\nWork programme is being jointly operated by Andalas;\n\nPlanning and preparations for drilling are advancing rapidly;\n\nSubject to well results, further gas and power development studies will be undertaken;\n\nGaffney Cline and Associates is in the final stages of completing a Competent Person’s Report (“CPR”) assessing the gas resources within the TAC; and\n\nFarm-in constitutes a reverse takeover pursuant to the Aim Rules and, accordingly, the farm-in agreement is subject to the approval of Andalas’ shareholders in general meeting.\n\nAn admission document which will include notice of a general meeting seeking shareholder approval will be published in due course.\n\n\nAndalas CEO, David Whitby, said “The signing of this agreement follows the Letter of Intent announced on 3 February 2016 and secures ADL’s foundation gas asset.  We are keen to take full advantage of the opportunity Tuba Obi East now affords Andalas, and we regard it as the base upon which a profitable Indonesian gas and power business can be built.\n\n“TOE has all the essential features to be a successful first asset for the Company.  It has gas proven by two wells into the reservoir zone that has been defined on 3D seismic and con...

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