KrisEnergy Exits Vietnamese Offshore Exploration Block
Singapore-based E&P independent KrisEnergy Ltd. has entered into a farm out agreement with a major international oil & gas company for the transfer of its entire 100% working interest in Block 115/09 located in the southern Song Hong Basin offshore Vietnam, for a nominal cash consideration. The company had acquired the exploration block in March 2014. In a statement released on Friday, KrisEnergy stated that its Board believes it is more prudent to allocate the company’s limited capital to funding near-term development, in particular the development of the Apsara oil field in Cambodia Block A. The consideration was arrived at taking into account that the transfer of the exploration block reduces KrisEnergy’s liabilities and mandatory work commitments comprising a 3D seismic acquisition program of at least 850 sq. km along with processing of the data and the drilling of one exploration well. The closing of the transaction remains subject to a number of conditions including approvals from the relevant government authorities.