Interra Resources purchases South Sumatran oil field for a record $78.5m

Largest-ever acquisition for energy firm.

Independent oil & gas exploration and production firm Interra Resources Limited announced that it has inked a US$78.5 million sales & purchase deal – its largest ever acquisition – by buying a major, producing oil field in South Sumatra, Indonesia.

Interra Resources intends to buy 100% of PT Benakat Barat Petroleum and the agreement is expected to be completed within nine months. PT Benakat Barat Petroleum owns the Benakat Barat cooperation contract (KSO) with Indonesia’s PT Pertamina.

The addition of this new oil field will allow Interra Resources to significantly enhance its production and total reserves in Indonesia. The latest oil field is located close to the company’s Tanjung Miring Timur (TMT) field.

The company’s existing assets include TMT in South Sumatra, Linda Sele in West Papua and Kuala Pambuang in Central Kalimantan, as well as oil fields in Chauk and Yenangyaung in Myanmar. Chief Executive Officer Marcel Tjia said: “In early 2012, Interra Resources embarked on an ambitious approach regarding exploration and production so as to become a regional player in the onshore oil & gas sector in Southeast Asia.”

“The planned purchase of this strategic asset is a delivery on this goal. The West Benakat oil field is a perfect complement to our existing Tanjung Miring Timur fieldand it will enhance Interra Resources’ balanced portfolio as it expands the company's production capacity and reserve base.”

This latest announcement comes after Interra Resources recently reported a stellar set of results for the first six months ended 30 June 2013. For this period, net profit grew 776% to US$4.45 million on the back of a 94% increase in revenue to US$13.76 million. The latest quarterly performance is the company’s best operating performance since its listing in 2003.