KUCHING: Sona Petroleum Bhd (Sona Petroleum) has mutually agreed with Salamander Energy PLC (Salamander) yesterday to extend the exclusivity period regarding the potential acquisition of shares of Salamander Energy (Bualuang) Ltd (SEBG” as agreed in the Heads of Agreement (HoA) signed with Salamander.
The extension of the exclusivity period will be until the end of July 2014 and is primarily to allow the auditors to prepare SEBG’s financial statements under International Financial Reporting Standards (IFRS) for the past three years.
The extension will also enable the parties to finalise the sale and purchase agreement in relation to the Proposed Transaction (SPA) as well as other transaction agreements, the company highlighted in a statement yesterday.
Commenting on the extension, Sona Petroleum managing Director, Datuk Sri Hadian Bin Hashim said, “We are very keen to ensure that all documents and filings are prepared and up to date in order for the entire process to progress as smoothly as possible.
“We have made positive progress regarding this proposed acquisition and are working to finalise the transaction agreements.”
A detailed announcement on the Proposed Transaction will be made in accordance with the Main Market Listing Requirements of Bursa Malaysia Securities Bhd upon completion of SEBG’s IFRS-compliant financial statements, finalisation of the terms and conditions of the Proposed Transaction and execution of the SPA and other transaction agreements in relation to the Proposed Transaction.
Hadian added, “We continue to be confident that the two concessions represent good potential for Sona Petroleum as the Bualuang Field in B8/38 block is currently producing and will contribute to our revenue as soon as the transaction is complete.
In addition to development works being carried out on the Bualuang Field with the planned Charlie Development, we are also excited about the potential in the G4/50 block, where several promising locations have already been identified for exploratory drilling.
“We are looking forward to signing the SPA as soon as possible and meeting all regulatory requirements.”
Salamander is an independent upstream oil and gas exploration and production company listed on the main market of the London Stock Exchange.
Salamander Energy PLC has a portfolio of producing and development and exploration assets in Thailand, Indonesia and Malaysia.