A consortium of shareholders through South Sumatra Energy (SSE) has a 50% stake in the Sekayu PSC while the operator PT Medco CBM Sekayu holds another 50%.
As per its original letter of intent, CBM Asia acquired the right to earn, indirectly through SSE, a 12% interest in the Sekayu PSC along with the right to provide financing from certain vendors for up to an additional 12% interest for $1,000,000 cash.
Under the terms of the deed, the vendors have agreed to relinquish and transfer all of their interest in SSE and the Sekayu PSC to the remaining shareholders of SSE including CBM Asia and Ephindo Sekayu CBM for C$75,000 in cash payment.
Ephindo, in turn, will transfer all of its interest in SSE to CBM Asia in exchange for a direct 21.5% participating interest in the Sekayu PSC.
After the completion of the transactions, CBM Asia, indirectly through SSE, will have a 26% stake in the Sekayu PSC, with Ephindo at 21.5%, Far East Methane at 2.5% and PT Medco CBM Sekayu a 50% stake.
