(EnergyAsia, April 27, Friday) —- Singapore’s Interra Resources Limited said it has signed a conditional agreement to acquire from JSX Energy (Thailand) Limited a 50% participating interest in the petroleum concession agreements (PCAs) for Block L17/48, Block L3/48 and Block L9/48 in Thailand.

 

JSXT, a majority owned subsidiary of Delaware, US incorporated JSX Energy Inc., holds all the rights and obligations of the blocks.

 

JSXT will assign to Interra 50% of the participating interests in the three onshore exploration blocks. Interra said it will fund JSXT’s 50% share of the exploration program expenditure for the first three years amounting to US$2.1 million. The total approved exploration program expenditure for the initial thre-year period is approximately US$4.2 million and thereafter, all expenditure will be shared proportionately between the owners.

 

Luke Targett, Interra’s CEO said: “This is Interra’s first venture into Thailand and the acquisition represents a significant addition to Interra’s oil and gas portfolio in Southeast Asia. It is an excellent opportunity for Interra which will enable us to apply our significant inhouse skills to add value to the project. We are greatly encouraged by the potential of the blocks and we look forward to building on the excellent relationship we have already established with JSXT.”

 

The petroleum blocks, which are almost adjacent to one another, cover a total area of 9,911 square kilometres and are located in a highly prospective area of western Thailand.

 

Block L17/48 abuts the Myanmar border and encompasses the Mae Sot Basin. The Mae Sot Basin has many characteristics required for oil generation and entrapment Ð a proven high quality source rock, favourable thermal and burial history, a thick sedimentary sequence, reservoir rocks, and structural features which form potential traps.

 

A significant amount of Thailand’s total oil and gas production is produced from similar reservoirs, conditions and timing as indicated in the Mae Sot Basin. The petroleum blocks are located in close proximity to Thailand’s Sirikit Field currently producing around 20,000 barrels of oil per day.

 

Frank Hollinger, chief technical officer of Interra, said: “The success of the Sirikit Field to the east and the similarities seen in the Mae Sot Basin make it an extremely exciting exploration play. If we are successful in the exploration program, every effort will be made to expedite the development of any discoveries and subsequently add significantly to Interra’s reserves. Based on our initial review of the available geological and seismic data, we have already identified several quality leads to begin working on.”