sumatra

Business as usual

Anyone Know the state of play QUEST MERRIC


OCT 2010

Theindonesiatoday.com - Quest Petroleum NL has entered into heads of agreement to subscribe for 6.2 million shares, represented 14.5%, of the issued capital in Merric Capital Pty Ltd worth of US$310,000. The final agreement is to be executed in next month.

Merric is a private Australian company that has for the past 2 years has focused on developing an oil and gas exploration and production business in Indonesia. Merric claimed that it has an experienced oil and gas executive team, led by Saxon Palmer.

Merric owns 80% on Prabu Energy Pty Ltd, which was recently awarded a joint study license covering the RanauProject Area, South Sumatera. The remaining 20% is owned by private Indonesian company. Prabu Energy retains the right of first refusal for the grant of a Production Sharing Contract (PSC) on this area upon completion of initial work programs.

The Ranau Project Area covers 2,123km square in onshore South Sumatera and is close to existing producing areas and is thought to contain similar hydrocarbon reservoirs/plays/traps to these production projects. The Ranau joint study provides for an exclusive technical study to be completed and will run for 7 months.

Quest required to establish a bank guarantee to support performance of the joint study and in consideration Quest will be issued a further 6.2m options in Merric exercisable at 5 cent on or before 30 June 2012. The exercise of these options will result in Quest holding a 25% interest in Merric. ( [email protected] This e-mail address is being protected from spambots. You need JavaScript enabled to view it )


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