RH Petrogas acquires Orchard Energy
SGX mainboard-listed RH Petrogas Limited,formerly Tri-M Technologies (S) Limited, today announced its acquisition of Singapore-based Orchard Energy Pte Ltd (“Orchard Energy”), an oil and gas exploration and production company which holds a production sharing contract in relation to the exploration and production of petroleum in West Belida Block, Jambi, South Sumatra, Indonesia.
The consideration for the acquisition will be an amount in cash ranging between S$351,000 to S$371,000, depending on the day of completion of the acquisition. This will take place on the fifth business day from the fulfillment of the conditions precedent provided in the sale and purchase agreement. In addition, RH Petrogas will assume the balance contractual commitment of US$5.66 million required under the PSC.
The Contract Area, which is operated by Orchard Energy, covers an area of approximately 1,406.94 sq km. The PSC was awarded to a subsidiary of Orchard Energy in May 2009, who has 94% interest in respect of the rights and entitlements of the contractor pursuant to the provisions of the PSC.
Apart from the Indonesian assets, this acquisition will include Orchard Energy’s key management who will strengthen RH Petrogas’ senior management team. They bring along with them extensive experience and in-depth knowledge and understanding of the exploration, operation and regulatory environment of the oil and gas industry.