The TAC Langsa area covers approximately 77sqkm within the Sumatra basin and contains two oil fields. Four wells have been completed in the Malacca Formation of which one well is active and three wells are idle. The fields are located in waters less than 325ft deep.
The active well is currently producing at approximately 620 barrels per day and is gathered via a floating production storage and barge vessel operated by Mitsui Ocean Development & Engineering (MODEC). An April 2010 third-party reserve study affirmed the net proven reserves were greater than 1.925 million barrels of oil.
The closing of the non-cash deal, which is subject to shareholder approval, is expected by the middle of August. The lifting of all other conditions and the signing of a definitive purchase and sales agreement is expected by the end of June.
