Indonesian based MedcoEnergi announced it has reached an agreement to acquire 100% ownership of Storm Ventures International Ltd. (SVI) for a base purchase price of US$ 114.03 million, excluding an amount payable for working capital which is subject to a customary post-closing adjustment.
SVI is one of the most active exploration and production companies in Tunisia, with a participating interest in eight working areas. SVI’s interest in Tunisia includes four exploration areas, two development areas and two production areas with concession periods of either 30 or 50 years. Out of these eight areas, five are located onshore and three are offshore. All of SVI’s blocks are located in prolific hydrocarbon areas. Five onshore blocks Adam, Sud Remada, Bir Ben Tartar, Jenein and Borj El Khadra are located in the Ghadames Basin, the same basin that MedcoEnergi’s Libya Area 47 is located and where large oil and gas reserves have been discovered with a 90% exploration success rate. While the remaining three offshore blocks Cosmos, Hammamet and Yasmin are located in the Pelagian Basin off the northeast coast of Tunisia.
Upon completion of the acquisition, MedcoEnergi anticipates adding 2P reserves and increasing oil-and-gas production by 12.3MMboe and 2800boe/d, respectively. Production is expected to increase to approximately 16000boe/d from in-fill well drilling of the existing producing block Bir Ben Tartar. Development of the Cosmos and Yasmin blocks scheduled for completion in 2018 is expected to add a further 12.6MMboe of 2P reserves.
The acquisition, effective 1 January 2014, is conditional upon, amongst other things, approval from the Government of Tunisia and the consent of certain existing partners’ in the blocks. “We have recently met with the Government of Tunisia and they have shown their strong support in welcoming us back to Tunisia to pursue oil and gas E&P opportunities” commented Lukman Mahfoedz, President Director & CEO of MedcoEnergi.
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