LONDON (Alliance News) - Andalas Energy & Power PLC on Tuesday said it has conditionally entered into a farm-in agreement for the Tuba Obi East gas-to-power project in Sumatra in Indonesia.
Andalas has agreed to acquire a 30% stake in the project through undertaking a USD1.1 million work programme, including drilling and testing on one well which would be put into production if successful.
The deal would give the company a presence in the Indonesian gas and power sector and would constitute a reverse takeover under AIM rules, meaning it will be subject to shareholder approval.
"TOE has all the essential features to be a successful first asset for the company. It has gas proven by two wells into the reservoir zone that has been defined on 3D seismic and confirmed by well logs, all whilst located in a prolific hydrocarbon basin," said David Whitby, Andalas' chief executive.
Andalas shares were untraded on Tuesday, having last traded at 1.17 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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