Singapore's Interra acquires stake in Thai oil blocks
Singapore's Interra Resources has entered into a conditional farm-in/farm-out agreement with JSX Energy (Thailand), or JSXT, for the acquisition of half of the participating interests in three petroleum-concession agreements in Thailand.
JSXT, the local unit of US JSX Energy, owns all of Blocks L17/48, L3/48 and L9/48. In a statement issued by Interra, JSXT will assign to Interra half of the participating interests in the three onshore exploration blocks. As consideration for the transaction, Interra will fund JSXT's 50-per-cent share of the exploration programme's expenditure for the first three years, which will amount to US$2.1 million (Bt73 million). The total approved exploration-programme expenditure for the initial three-year period will be about US$4.2 million, and thereafter all expenditures will be shared proportionately between the owners. The transaction is subject to approval by the Thai Energy Ministry. Listed on the Singapore Exchange, Interra is engaged in upstream petroleum exploration and production. Interra CEO Luke Targett said: "This is Interra's first venture into Thailand, and the acquisition represents a significant addition to Interra's oil and gas portfolio in Southeast Asia. "It is an excellent opportunity for Interra, which will enable us to apply our significant in-house skills to add value to the project. We are greatly encouraged by the potential of the blocks, and we look forward to building on the excellent relationship we have already established with JSXT." The petroleum blocks cover a total area of 9,911 square kilometres and are located in a highly prospective area of western Thailand. They are in close proximity to Thailand's Sirikit Field, which is the most productive onshore field, producing about 20,000 barrels of oil per day. Interra chief technical officer Frank Hollinger said: "The success of the Sirikit Field to the east and the similarities seen in the Mae Sot Basin make it an extremely exciting exploration play. "If we are successful in the exploration programme, every effort will be made to expedite the development of any discoveries and subsequently add significantly to Inter-ra's reserves. "Based on our initial review of the available geological and seismic data, we have already identified several quality leads that we can begin working on."
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