Elephant Hunting in Indonesia
Continental Energy Corporation is a small and aggressive oil and gas exploration company focusing its efforts on making large commercial discoveries and establishing petroleum production in low to medium risk, but high potential reward, international properties.
Indonesian Oil Focus
Indonesia holds proven oil reserves of 4.2 billion barrels and ranks twenty first among world oil producers, accounting for approximately 1.2% of world oil production . Declining oil production and increased consumption resulted in Indonesia becoming a net oil importer inlate 2004. This factor, along with high oil prices in 2004-2008, led the Government to substantially scale back the domestic fuel subsidyin 2008 and to decide to temporarily withdraw from the Organization of Petroleum Exporting Countries –an organization representing approximately 45% of world oil production. As the only Asian member of OPEC since 1962, the Government has indicated it will consider rejoining OPEC if the country’s oil production can be increased and it can becomea net exporter again.
Indonesia is ranked eighth in world gas production, with proven reserves of 108 trillion cubic feet in year 2010. This ranks eleventh largest in the world and the largest in the Asia Pacific region.
Management has long experience in-country and solid relationships with both industry and government at all levels; there is a well established history of positive relationships between the international oil industry and the Government of Indonesia; there is strong and growing regional demand for both crude oil and natural gas provides expanding and near-by I-C-I (India-China-Indonesia) markets for any production Continental establishes.
Bengara II Block
Field shooting and recording operations on the 3D portion of the Bengara-II block seismic acquisition program are now completed. The full original 3D program of 178 square kilometers (120 km(2) full fold) has been recorded. Computer processing of the entire 3D program is also now completed.
Original plans called for a total of 920 line kilometers of new 2D seismic data to also be shot and recorded. Repositioning of some lines and abandonment of others due to the prawn farm issues has resulted in a reduction of the planned 2D program. CGB2 now expects to complete a total of 685 line kilometers of new 2D seismic recording.
CGB2 is currently finalizing its 2012 work program and budget and the Company will update 2012 drilling plans when the budget is finalized.
Geothermal Energy Project
- A Milestone Event for Continental
- First Malaysian Power Plant Fired By A Geothermal Source
- $328,000,000 Revenue From Malaysia Alone
- Government Of Malaysia has awarded a grant of approximately US$ 11.5 Million to Tawau Green Energy Sdn. Bhd.
Continental Energy announced that it has purchased a 10% stake in Tawau Green Energy Sdn. Bhd. ("TGE"), a privately held company based in Kota Kinabalu, Sabah, Malaysia.
TGE is a geothermal energy developer. On November 29, 2011, TGE entered into a Renewable Energy Power Purchase Agreement (the "PPA") with Sabah Electricity Sdn. Bhd. ("SESB") to supply a capacity of 30 megawatts of electrical power to SESB's East Coast Sabah power grid. SESB is a utility owned 80% by Tenaga Nasional Berhad, the federally owned electrical generation authority and utility of Malaysia and 20% by the State Government of Sabah. TGE is developing a volcano related geothermal resource known as "Apas Kiri" which is located in southern Sabah near the city of Tawau approximately 100 miles north of Continental's Bengara-II oil and gas PSC in Indonesia.
On May 7, 2012, the Company entered into an option agreement to acquire 300,000 shares of Tawau Green Energy ("TGE") for 6,000,000 Malaysian Ringgit ("MYR") ($1,965,600). TGE is a privately held company based in Malaysia and is in the business of developing geothermal energy. Under the terms of the agreement, the first MYR 3,000,000 must be paid by the first anniversary of the agreement. The remaining MYR 3,000,000 of the investment will be earned through the Company's expenditures on a mutually agreed upon work program also by the first anniversary of the agreement. As at June 30, 2012, the Company had paid $81,850 and incurred expenditures amounting to $32,918 on the investment. If the MYR 6,000,000 is not paid by May 7, 2013, the Company must transfer and return an amount from its 300,000 TGE shares to the seller in proportion to the Company's shortfall against the total purchase price obligation of MYR 6,000,000.