Australia-based Bass Oil has elected to withdraw from the acquisition of a 100% participating interest in the North Madura Production Sharing Contract (PSC) in the East Java Sea, Indonesia from AziPac Limited.
Bass Oil entered into a heads of agreement to acquire a 100% participating interest in the North Madura PSC and assume the operatorship in November 2018.
The PSC covers an area in coastal shallow waters north of the eastern quarters of the Indonesian island of Java and it is adjacent to numerous producing oil and gas fields and existing export infrastructure. The PSC requires the drilling of one well and, in the event of success, two contingent wells.
Finalization of the acquisition was subject to the execution of a detailed sale and purchase agreement and Bass being satisfied with the results of its due diligence inquiries on the two AziPac subsidiaries which were to be acquired by Bass to effect the transaction.
However, Bass said on Thursday that neither of these conditions had been met. Therefore, the company has elected to withdraw from the transaction, which it is entitled to do under the terms of the heads of agreement entered into by Bass and AziPac.
Bass Oil added it is presently actively pursuing several other acquisition opportunities in Indonesia in line with its strategy of expanding its footprint in that country and building a diversified portfolio of exploration, development, enhanced production and producing assets.