Neon out of Indonesian PSC

Indonesia exit: Neon out of PSC

Singapore’s Kris Energy has knocked back Neon Energy’s application to pay cash calls in order to remain as part of the Tanjung Aru production sharing contract.

Australia-listed Neon Energy submitted a formal offer to pay all of its outstanding cash calls for a recently-acquired seismic, in return for KrisEnergy allowing the company to remain in the PSC.

KrisEnergy chose not to accept the offer and has given up its 42% working interest in the PSC, which gives the company a clean slate without any further liability.

The company issued Neon a notice of withdrawal when Neon failed to pay $1.3 million in cash calls.

Neon made a “good faith” payment of $300,000 to try and appease KrisEnergy, but this was not enough.

The balance was set to be paid once the company completed the sale of its Californian assets.

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