Harvest Acquires 47% Interest in Budong-Budong PSC

Harvest Natural Resources has acquired a 47% interest in the 1.35 million acre Budong-Budong production sharing contract from Tately Budong-Budong.

The prospect is located onshore West Sulawesi, Indonesia. The acquisition is subject to approval by the Indonesian government authorities, including BPMigas, Indonesia’s oil and gas regulatory authority.

During the first three-year exploration phase of the production sharing contract (PSC), Harvest and Tately expect to acquire, process and interpret approximately 500km of 2D seismic and drill two exploration wells. The expected cost of the program is $22 million of which Harvest will fund the first $17.2 million plus it’s pro rata share of subsequent costs.

Tately will operate through the exploration phase of the PSC. Harvest has the option to assume operatorship upon approval of a plan of development for any commercial discovery, subject to BPMigas approval.

The Budong-Budong PSC contains Indonesian frontier terms with a net after-tax production sharing split of 35% contractor and 65% Indonesian government for oil and 40% contractor and 60% Indonesian government for natural gas. The PSC has a 30-year term with an initial six-year exploration phase with an option for a four-year exploration extension.