LONDON (Alliance News) - Energy sector-focused investment company Andalas Energy & Power PLC on Wednesday said its plans for drilling contractors, potential locations and surveys at its Tuba Obi East concession are all well advanced, enabling immediate follow up once its work programme has been approved.
Andalas said it has delivered its presentation on its proposed work programme to test the Air Benekat formation at the Tuba Obi East site to Indonesian state-owned oil and natural gas company PT Pertamina, which will need to approve the programme before it can progress.
Andalas said the approval is currently a priority, noting that, in parallel with this, it has advanced all other necessary work streams, including identifying two candidate locations, selecting the team, surveying the location, establishing necessary health, safety and environmental policies. These "are all key in preparing for the execution of the work programme on a timely basis following Pertamina approval", Andalas said.
Meanwhile, Andalas noted the endorsement for the construction of six mobile power plants in Indonesia coming from the country's President Joko Widodo, which it said it was encouraged by, "particularly when set against the favourable regulatory backdrop and government support".
The company said a number of its senior team members have also agreed to receive a proportion of their fees in shares, at 0.20 pence per share. In settlement of these fees Andalas said it has agreed to issue a total of 32.4 million new shares for a total of GBP64,779.
Shares in Andalas were down 5.1% at 0.159p on Wednesday.
"Andalas is in the right place at the right time: Indonesia has multiple stranded gas discoveries; the country has a well-documented shortage of power; the government has set a target to add 35,000 megawatts of new capacity by 2019; and importantly the recent ground-breaking ceremony evidences that Indonesia recognises at the national and local level the contribution that small gas to power projects can make towards hitting this target," said Chief Executive David Whitby.
"Tuba Obi East is our first property, which will be advanced by the execution of our farm-in work programme, once necessary consents are received, and our internal and external team is standing by having fully cleared the way to execute," Whitby added.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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