Matrix Oil ran into cash flow problems after mechanical failure led to the shutdown of the L1 well at its Langsa oilfield in November 2001. Alleging negligence on the part of the company leasing the FPSO, Matrix then launched legal proceedings in the UK against the firm.
Between January and October last year, the junior explorer sought to raise funds however Matrix directors said the uncertainty resulting from the September 11 terrorist attacks hampered its efforts. In particular, funds from American interests failed to materialise.
According to the appointed administrator, charted accounting firm Norgard Closhessy, the company assets and holding company have been up for sale since the end of October with interested parties currently completing due diligence by the 23 January deadline.
The North Sumatra Basin covers a total area of 56,000 sq.km and is one of three highly prolific basins located along the spine of the island of Sumatra. Total known reserves in the North Sumatra Basin are estimated as being 23 trillion cubic feet of gas and 1.3 billion barrels of oil and condensate, contained in 57 oil and gas fields discovered to date.
