PR Newswire
London, December 26
27 December 2018
Andalas Energy and Power Plc
(‘Andalas’ or the ‘Company’)
Update on Bunga Mas PSC
Andalas Energy and Power PLC, is pleased to report that we have agreed with the vendor of the Bunga Mas PSC to extend the long stop date for satisfaction of the sale and purchase agreement conditions precedent to 15 February 2019 (originally announced on 29 August 2018).
We have agreed to extend the long stop date after consultations with the vendor and the Indonesian Government regarding the vendor’s request to vary the terms of the PSC by extending the exploration period and converting it to the new gross split regime. These consultations have led us to conclude that there is a reasonable prospect of the extension being granted.
Simon Gorringe, CEO of Andalas Energy and Power PLC said, “I am pleased with the steady progress being made by the vendor towards receiving the regulatory consent for the licence extension on terms, including the conversion to gross split, that are acceptable to the vendor and Andalas.
“In our opinion the new gross split regime and the former regime can provide broadly similar outcomes for development projects such as Bunga Mas and therefore we would be satisfied with an extension under either regime.
“Bunga Mas PSC represents a huge opportunity for Andalas, it has near term production potential and longer term has up to five potential exploration targets each with multi-million barrel of oil potential, the exploration of which we believe could be financed in full or in part by the production from the first phase of the project development.
“We look forward to providing the market with an update on our acquisition of Bunga Mas PSC in due course.”
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR). Upon the publication of this announcement via a Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.
For further information, please contact:
| Simon Gorringe | Andalas Energy and Power Plc | Tel: +62 21 2965 5800 |
| Roland Cornish/ James Biddle | Beaumont Cornish Limited (Nominated Adviser) |
Tel: +44 20 7628 3396 |
| Colin Rowbury |
Novum Securities Limited (Joint Broker) |
Tel: +44 207 399 9427 |
| Christian Dennis | Optiva Securities Limited (Joint Broker) |
Tel: +44 20 3411 1881 |
| Stefania Barbaglio | Cassiopeia Services Limited (Public Relations) | Stefania@cassiopeia-ltd.com |
