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(Houston, Texas) Tradewinds Oil and Gas International, Ltd., a Texas limited partnership managed by general partner Tradewinds Oil and Gas, Inc., a private Texas corporation, has announced it has completed a three phase acquisition of the Indonesian assets of Tracer Petroleum Corporation (OTC: BB TCXXF). The third and final phase covered all stock and assets of PerminTracer Petroleum Ltd. PerminTracer owns the 1.2 million acre North Tanjung Production Sharing Contract (PSC) in South East Kalimantan, Indonesia. Tradewinds had previously announced the principal assets acquired in phases 1 and 2 included a 4.25% carried interest in the producing Ogan Komering Block in South Sumatra, an extensive Indonesian database, and a Kremco 600 truck mounted drilling rig. Total consideration was $2.7 million. No reserve numbers were released due to confidentiality restrictions.
The first phase of the transaction included the 4.25% carried interest in the Ogan Komering Block in the South Sumatra Basin and a comprehensive Indonesian database. The “OK Block” is operated by a unit of Talisman Energy Inc.
The Kremco 600 drilling rig with ancillary inventory and a 450HP Oshkosh oilfield truck was acquired in the second phase. The rig is presently stacked at the North Tanjung PSC, South East Kalimantan on the island of Borneo. Several companies have recently inspected the rig for possible use in their operations.
All of the stock and assets of Tracer’s wholly owned subsidiary, PerminTracer Petroleum Ltd., a British Virgin Islands corporation, was acquired by Tradewinds in the third and final acquistion phase. The principal asset of PerminTracer is the 1.2 million acre North Tanjung PSC, onshore South East Kalimantan. The Block has significant exploration potential in the area offsetting the 90 million barrel Tanjung Oil field to the south, according to company officials.
Tradewinds President, James E. Scott, III said “the consideration includes a $2 million production payment”. He adds “this transaction firmly establishes Tradewinds in Indonesia and provides a spring board to launch the company into more opportunities in this country. The recent change in government, the welcoming attitude of the new management of the national oil company, Pertamina, and availability of opportunities makes Indonesia a primary focus for Tradewinds. Through our PerminTracer office in Jakarta, we will be able to more easily access these opportunities, for the mutual benefit of the people of Indonesia and Tradewinds”.
Other countries and areas where Tradewinds is active include Egypt, China and West Africa. Through an affiliate, the company owns a 25% interest in the Gazwarina oil field operated by a unit of Marathon Oil Company in Egypt.
Tradewinds is focused on acquiring international undeveloped discoveries, underdeveloped fields, fields needing rehabilitation and marginal fields that are below the economic threshold of larger companies. “We prefer producing properties with development, rehabilitation, improved oil recovery and enhancement opportunities as well as those with an exploration component. Exploration projects, where the financial and work commitments have been met, are also of interest. Both non-operated and operated properties will be considered for acquisition,” Scott said.