Malaysia's Mitra Energy Picks Up 30% Stake in Gas Blocks Offshore Vietnam

Mitra Energy has signed an agreement to buy 30% working interest in two gas blocks offshore Vietnam.

The company inked a sale purchase agreement with Inpex to buy the stake in Blocks 05-1b and 05-1c Production Sharing Contract (PSC) for a total cash consideration of $14.3 million subject.

Blocks 05-1b and 05-1c are located 350 km offshore Vietnam in the Nam Con Son basin in water depths of around 120 meters. The Block 05-1 PSC holds two fully appraised gas and condensate discoveries, Dai Nguyet and Sao Vang, in close proximity to the Nam Con Son gas transportation pipeline and existing production facilities.

Partners in the blocks are Idemitsu Oil and Gas Co. Ltd. and JX Nippon Oil & Gas Exploration Corporation each with a 35% working interest.

The Block 05-1 acquisition will further strengthen Mitra's position in Vietnam and add to its existing U Minh and Nam Du gas discoveries in the Malay Tho Chu Basin, the company said on Tuesday.

Mitra Energy Inc. is TSX-V listed oil and gas company headquartered in Kuala Lumpur, Malaysia. The company is currently engaged in exploration, appraisal and pre-development activities in the Philippines, Vietnam and Indonesia.