The Board of Directors of Interra Resources Limited (ITR) wishes to announce that it has on 31 August 2010 entered into a sale and purchase agreement with Merona Capital Limited to acquire the entire issued share capital of IBN Oil Holdico Ltd. IOH owns 100% participating interest in the rights and obligations of exploitation, development and complementary exploration of hydrocarbons in the Linda Sele Technical Assistance Contract with Perusahaan Pertambangan Minyak dan Gas Bumi Negara dated 16 November 1998.
IOH is a company incorporated under the laws of British Virgin Islands with a paid-up capital of US$100,000. The 100% participating interest in Linda Sele TAC constitutes IOH’s main area of business. The Directors are of the view that the Acquisition will be beneficial to the Company as it is envisaged that the Acquisition is likely to increase the Company’s oil production and facilitate the Company’s future expansion in this area of the business.
The purchase consideration of US$6,250,000 in cash, was derived on a “willing buyer willing seller” basis. Part of the Purchase Consideration amounting to US$5,750,000 is payable on the closing date of the Acquisition. The remaining US$500,000 of the Purchase Consideration will be payable in 2 equal tranches of US$250,000 each.
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Tags: Interra Resources, ITR, Merona Capital, Oil and Gas
