JAKARTA (TheInsiderStories) – Star Phoenix Group Ltd., (AIM: STA), an international company, considers to released its oil and gas interest in Indonesia, said the company on Thursday (04/03). Recently, the group has completed the sale of Range Resources Trinidad Ltd., to LandOcean Energy Services Co., Ltd.
Following completion of the transaction, all of the company’ debt and payables worth of US$95.1 million to LandOcean have been offset and repaid, and all debt agreements with buyer have been terminated. LandOcean has paid a total cash consideration of $1.51 million to Star Phoenix.
The chairman, Kerry Gu, stated, as part of a wider restructuring, the producer continues to evaluate new strategic business opportunities and to review options with regards to its rigs business and its Indonesia interest. The company has nil debt and unrestricted cash of approximately US$2.9 million.
The rigs previously mortgaged to LandOcean have also been discharged and released. Both companies have agreed that the remaining $1.00 million, plus an interest rate of 8 percent per annum, will be paid before April 30, 2020.
Following the disposal, Star Phoenix’ residual business comprises oilfield services in Trinidad with 12 onshore land rigs valued by an independent party Shanghai Orient Appraisal Co., Ltd., in February 2020 at $21.8 million, as well as an interest in the oil and gas project in Indonesia.
“Over the coming months, our focus will be on reviewing options for our drilling business in Trinidad and the Indonesian oil and gas project, introducing cost-cutting measures across the Group and streamlining the residual operations. We also continue to evaluate new strategic business opportunities,” he noted.
Star Phoenix entered Indonesia in 2017 by acquiring interests in the Perlak field. The field is located in an established hydrocarbon province of Aceh. The field is one of the oldest producing oilfields in the world, first discovered in 1899. It lies on-trend with many producing hydrocarbon fields, including the giant Arun field.
The produced oil will be sold to PT Pertamina, the Indonesian state-owned oil and gas corporation, at the nearest oil receiving point to the Perlak field. Approximately 60,000 barrels of oil equivalent per day have been produced to date from shallow depths of less than 3,300 feet of very light oil.
Star Phoenix holds the Perlak Oil’ license to operate the block until 2032.
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