Australia Listed Kairiki Energy to Sell Philippines Oil, Gas Assets

Australia listed Kairiki Energy has entered into an agreement with Focus Oil and Gas for the disposal of its entire interest in Yilgarn Petroleum Philippines Pty Ltd, the holder of the company’s interest in Philippines.

Yilgarn holds joint venture interests in the following Philippines Offshore Oil and Gas Permits:

Service Contract 54A - 30.1% Participating Interest

Service Contract 54B - 40% Participating Interest

“As non-operator of service contract 54A and 54B the company has minimal control (other than through its minority participating interest) over future activities within the licences and therefore any future financial obligations, including timing. In addition, the moratorium approved by the DOE could potentially result in the Company being relatively inactive over the next 3 years,” Kairiki said in a statement.

Kairiki added that it has limited cash resources to undertake any potential exploration programme and limited opportunity to raise new capital without certainty over the future direction of service contract 54A and 54B.

Based on current position, asset disposal is in the best interests of the company, it said.