November 28, 2016 - 4:28 PM EST
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ACL International Increases Interest in South Block A PSC and Update on Drilling of Amanah Timur-1 Well





ACL International Increases Interest in South Block A PSC and Update on Drilling of Amanah Timur-1 Well

Not for distribution in the United States or through United States wire services.



Calgary, Alberta (FSCwire) - ACL International Ltd. (ACL:TSX-V) (“ACL”) is pleased to announce it has increased its interest in the South Block A PSC. ACL, through its 75% holding in subsidiary Renco Elang Energy Pte. Ltd. (“REE”), in conjunction with its joint venture partner Lion Energy Ltd. (“Lion”) have exercised their rights to default PT.  Prosys Oil & Gas International (“POGI”) for non-payment of cash calls.

 

POGI’s 14% interest will be acquired pro-rata by Lion and REE, as per the Joint Operating Agreement (“JOA”).  As a result of the default and increase in interest, REE will hold 59.3% working interest (previously 51%) and Lion will hold 40.7% (previously 35%).  While POGI will not benefit from any potential success of the upcoming Amanah Timur-1 well under the JOA, POGI remains responsible for any incurred/outstanding PSC liabilities including its share of unpaid cash calls.

 

Amanah Timur-1 Prospect Overview

 

Site preparations have been underway and REE expects to spud the Amanah Timur-1 well in December 2016.

 

The well-defined prospect is situated within a highly productive hydrocarbon trend and is covered by recently acquired seismic, hence the good probability of success. The target Keutapang play has delivered over 600 mmbbl oil, 2.2 tcf gas and 50 mmbbl condensate in the basin to date.  The shallow objective (with a planned total depth of approximately 550 metres) has already proven oil productive in pre-WWII wells and is close to oil and gas infrastructure with potential to deliver near term cash flow.  The well is expected to cost US$1.2 Million (representing approximately on-third of 2014 cost estimate) and includes completion and planned cased hole testing.

 

The 300 mmbbl Rantau Oil field is located approximately 30 km to the southeast and the 400 mmsfcgd open access gas pipeline serving Medan runs within several kilometres of the location.

 

About ACL International Ltd.

 

ACL’s other Indonesian oil and gas assets include (a) 50% of Langsa TAC, an offshore field with gross production of 884 bopd; and (b) 38.25% in South Block A PSC (“SBA”), an onshore block located in the North Sumatra Basin, which is one of the most productive hydrocarbon regions in Indonesia with over 80 known oil and gas fields.  ACL’s subsidiary Renco Elang Energy Pte. Ltd. (“REE”) is the operator of SBA.

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 

ACL International Ltd.

Mohammad (Mo) Fazil, President and CEO

Telephone: +1 (403) 613-7310

 

Statements in this press release may contain forward-looking information including, operating costs, administrative costs, acquisitions and dispositions, capital spending, access to credit facilities, income taxes, regulatory changes, and other components of cash flow and earnings. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expects” and similar expressions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of ACL. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

 

The forward-looking statements contained in this press release are made as of the date of this press release, and ACL does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by securities law.

 

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.



To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/ACL11282016.pdf

Source: ACL International Ltd. (TSX Venture:ACL)

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Source: FSCwire (November 28, 2016 - 4:28 PM EST)

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