Ratu Prabu eyes interest in Karang Agung block

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JAKARTA (rambuenergy.com) – PT Ratu Prabu Energy Tbk (ARTI) plans to acquire 75 percent participating interest in Karang Agung Block in South Sumatera from PT Odira Energy Persada with an estimated value of US$61 million, a company official said.

Ratu Prabu’s Finance Director Gemilang Zaharin that the company is currently conducting due diligence to assess the value of the targeted shares. He expects to complete the acquisition this year, should the company opted to acquire the stakes.

“We are still conducting due diligence before moving on to acquire (the interests),” he said. The block is expected to produce 1,800 barrels per day with estimated reserves of 150 million barrels of oil.

Ratu Prabu admitted that the falling oil price has resulted in lower contracts that have been secured by the company.

In the first six months to June, the company secured new contract worth US$1 million per annum from Premier Oil and Conoco Phillips. the company also obtained contract from PT Pertamina Drilling Service Indonesia (PDSI), a unit of Pertamina worth Rp 27 billion per annum. The contracts last until 2017. The company has also contracts on hands from a number of oil and gas companies.

In the first quarter this year, the company posted net profit of Rp8.07 billion, down 20.5 percent from a year earlier on sales of Rp83.12 billion compared to Rp85.31 billion in the same period last year.

Ratu Prabu Energy is found and owned by Burhanuddin Bur Maras. (*)