Interra Resources Ltd., an independent oil and gas exploration and production player in Southeast Asia, has signed a US$78.5 million sales and purchase deal – its largest acquisition to date – by buying a major, producing oil field in South Sumatra, Indonesia.
Interra Resources intends to buy 100% of PT Benakat Barat Petroleum, and the agreement is expected to be completed within nine months. PT Benakat Barat Petroleum owns the Benakat Barat cooperation contract (KSO) with Indonesia’s PT Pertamina.
The addition of this new oil field will allow Interra Resources to significantly enhance its production and total reserves in Indonesia. The latest oil field is located close to the company’s Tanjung Miring Timur (TMT) field.
The company’s existing assets include TMT in South Sumatra, Linda Sele in West Papua and Kuala Pambuang in Central Kalimantan, as well as oil fields in Chauk and Yenangyaung in Myanmar.
This latest announcement comes after Interra Resources recently reported a stellar set of results for the first six months ended June 30. For this period, net profit grew 776% to US$4.45 million on the back of a 94% increase in revenue to US$13.76 million. The latest quarterly performance is the company’s best operating performance since its listing in 2003.
Interra Resources Ltd., a Singapore-incorporated company listed on the SGX Mainboard, is engaged in the business of oil and gas exploration and production, including oil and gas production, field development and exploration.