2009-08-15-2009-01-01-2009-01-01

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
0MM
Description

Acquired 25% interest in Indonesian South Bengara-II Block PSC.

Joint-venture partners Adelphi Energy Ltd., Sydney, Australia, (Australia: ADI) Continental Energy Corp., Dallas, (OTCBB: CPPXF) and GeoPetro Resources Co., San Francisco, (Amex: GPR) have acquired an interest in a production-sharing contract in Indonesia. The group's joint-venture company, ACG (South Bengara-II) Pte. Ltd., signed the contract for the South Bengara-II Block. GeoPetro's subsidiary, GeoPetro Resources (South Bengara-II) Pte. Ltd. and Continental subsidiary Continental Energy (South Bengara-II) Pte. Ltd. each own a 24.999% stake in ACG and the contract. South Bengara-II encompasses 5,257 square kilometers (more than 1.3 million acres) onshore the northeastern coast of Borneo. The block contains an existing gas accumulation, several oil and gas seeps, and prospects and leads. It is also adjacent to the Bengara-II Block in which GeoPetro owns a 12% interest. ACG will pay a signing bonus of US$1 million and complete a work program during the first three contract years that includes conducting geological and geophysical field surveys and studies, acquiring at least 100 line kilometers of new 2-D seismic, and drilling one exploration well for a total minimum expenditure of US$7.85 million. GeoPetro and Continental Resource will each pay 50% of the signing bonus and 50% of the first US$3 million in expenditures. Thereafter it will pay its 24.999% equity share of costs and be entitled to the same share of revenues. Exploration activities in the block are expected to commence with geological field surveys in 2009. GeoPetro president and chief executive Stuart J. Doshi says, "We have been involved in exploration in the vicinity of South Bengara-II Block since 2000 and have accumulated extensive knowledge of the petroleum geology in this highly prospective area that we believe can translate into significant commercial discoveries." ACG general manager Andrew T. Eriksson says, "Our new year's resolution was to acquire two new properties before the end of 2008, one giving us oil and gas production income and one giving us a high potential exploration property. Closing of the Tungkal acquisition is now well in hand and today's acquisition of a high potential exploration property we know well realizes the second half of our 2008 objectives in style."