NZO
19/12/2014 10:57
MINE
PRICE SENSITIVE
REL: 1057 HRS New Zealand Oil and Gas Limited
MINE: NZO: Change in Indonesia permit and acquisition of rights
Lion Energy has been granted an option to acquire a 15 per cent interest in
the conventional Bohorok Production Sharing Contract in North Sumatra,
Indonesia, in exchange for the Bohorok partners receiving a 45 per cent
interest in an unconventional Joint Study Agreement over virtually the same
area.
If the option is exercised, the transaction would value the New Zealand Oil &
Gas interest in the conventional Bohorok PSC at approximately 1.4 cents per
share.
The conventional Bohorok PSC was signed in 2012 and entitles the partners to
explore for and develop conventional oil and gas accumulations. A 206 square
kilometre seismic survey over the block was completed this year and a
decision to drill a well is expected in 2015.
If Lion elects to exercise its option, Lion will reimburse the Bohorok
partners for 15 per cent of the back costs, including the costs of the recent
seismic survey, plus pay a capped carry amount for the seismic costs.
Following the transaction, if Lion exercises its option, each party will have
the following share in the Bohorok conventional PSC:
New Zealand Oil & Gas 38.25% (Previously 45%)
Bukit Energy (Operator) 38.25% (Previously 45%)
Surya Buana Lestarijaya 8.50%* (Previously 10%)
Lion Energy 15%
In the unconventional JSA, Lion's previous 100% interest will become:
Lion Energy 55%
Bukit Energy 20.25%
New Zealand Oil & Gas 20.25%
Surya Buana Lestarijaya 4.5%*
If the Joint Study Agreement is awarded over the unconventional, the Bohorok
partners will reimburse Lion for back costs and contribute 45 per cent of
third party costs of conducting the Joint Study. At the completion of the
Joint Study, each party has an option to jointly participate in the direct
award bid round for the unconventional PSC that will be announced by the
Indonesian regulator.
Lion will operate the Joint Study. Bukit will be the initial operator of the
unconventional PSC, if it is awarded, until the completion of the 3-year firm
work commitment, at which time operatorship will be reviewed and, if Lion
still holds 51 per cent of the PSC then, it may become operator subject to
regulator approval.
*Bukit and New Zealand Oil & Gas have entered into an agreement with SBL to
jointly acquire its interests in both the PSC and Joint Study Agreement.
John Pagani
External Relations Manager
+64 21 570 872
End CA:00259166 For:NZO Type:MINE Time:2014-12-19 10:57:58
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
