Winchester Energy Ltd. has partnered with Triangle Energy (Global) Ltd. and Tetragon Energy Ltd. to conduct a joint study of an offshore exploration area in Indonesian waters.
Winchester has agreed to jointly fund the study and performance bonds. In exchange, Winchester will have the right to acquire a 24.5 per cent interest in any petroleum sharing contract (PSC) awarded to Triangle over the study area.
Winchester and Tetragon Energy will each provide a loan of AU$500,000 to Triangle to be used as collateral for the performance bond required by SKK Migas.
Triangle recently commenced the joint study in conjunction with an Indonesian technical institute, which is expected to take six to eight months at a cost of US$300,000.
The joint study is a pre-licensing arrangement coordinated by SKK Migas, allowing companies to evaluate open acreage before it is offered under a PSC bid round.
While the acreage will be awarded through a competitive PSC process, joint study participants may receive preferential consideration or a right to match competing bids for a PSC.
If the results of the study are compelling, Triangle plans to apply for a PSC over the study area. Triangle will also be the operator of any future PSC and will hold a 51 per cent working interest, while Winchester and Tetragon will each be entitled to 24.5 per cent.
