GAS

AWE cancels Indonesian HOA

AUSTRALIAN Worldwide Exploration has terminated a heads of agreement to acquire a 90% interest in...

AWE cancels Indonesian HOA

The HOA was signed in September last year with PT Ogspiras Basya Pratama (OBP), which is developing the Kilang liquefied petroleum gas extraction plant near Palembang, south Sumatra.

But AWE says after a long period of due diligence it has decided not to proceed with the acquisition, because OBP did not provide critical documents about the current ownership of the company. In addition, AWE said there was some uncertainty over the firm's historical financial records. No funds have so far been paid for the transaction, according to AWE.

AWE managing director Bruce Phillips said the move has not altered the company’s view that Indonesia is an attractive destination for future investment.

“We are very disappointed that the OBP deal could not be consummated, however AWE is committed to its due diligence processes and corporate governance principles, and these will not be compromised,” Phillips said.

“The funds allocated to the OBP investment, raised from the share placement in September 2005, will be utilised for other oil and gas investments in our broader existing portfolio or in new ventures.”

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