Kairiki Energy: Update - SC 54A Farm-in

Tuesday, March 20, 2012
  • The Company and selected farminee party have signed a Letter Agreement that outlines the agreed commercial terms of a farmin and is subject to a number of conditions.

The Company is pleased to provide an update on progress of its SC 54A farm-in negotiations announced on 11th July 2011.

The Company and selected farminee party have signed a Letter Agreement that outlines the agreed commercial terms of a farmin and is subject to a number of conditions.

The transaction contemplated will result in Kairiki reducing its interest in SC 54A from 30.1% to 15.05% in return for the Party funding Kairiki's remaining 15.05% participating share in the drilling of one exploration well within the permit before the end of 2012. If the well is successful, the Party will also fund Kairiki's participating share in the cost of a Drill Stem Test (DST).

The transaction will be conditional upon:

  • The execution of a Farm-in Agreement (the negotiation and preparation of which is expected to be concluded in the coming weeks);
  • The approval of the respective Boards;
  • The completion of due diligence by both the Party and Kairiki, and;
  • Necessary approval for the transaction from the Philippine Government, regulatory authorities and Kairiki's third party financiers.

A condition of the farm-in negotiations requires the identity of the Party together with the terms of the farm-in agreement to remain confidential until the necessary documents have been executed.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

Related News

Join 70,000 other oil and gas professionals

Network with others, build your profile, and receive the latest oil and gas news in your inbox. It's free!

Your details are never shared or sold. We hate spam too.

» More Jobs       » Upload a free Job       » Upload your CV

More Europe Jobs

More Global Jobs

Opinion & Commentary

  • Oil decline: Price makes the story
    So oft in theologic wars, The disputants, I ween, Rail on in utter ignorance Of what each other mean, And prate about an Elephant Not one of them has seen! -- The B ...

» More Opinion & Commentary         » Write for us             RSS RSS

Oil & Gas Training

Mastering 4D Seismic
Ian Jack, London, 06 Nov 2014

Petroleum Geology of West Africa
Duncan Macgregor, London, 12 Nov 2014

Introduction to Contingency Planning: The value to oil and gas companies in high-risk areas
Mark Theobald, London, 18 Nov 2014

All Upcoming Training


Opinions & Commentary

Oil price, Amec, Afren, Cape, Sundry -BP-Velocys/CompactGTL- And finally...

by Malcolm Graham-Wood

Read More »