Artist & Entertainment Group (ASX:AEM) is a step closer towards taking up a stake in the Wailawi oil and gas project in East Kalimantan, Indonesia.
Wailawi has been producing since 1983 though upside potential remains in untapped oil and gas zones.
Production hit a peak of 18 million cubic feet of gas in 1985 from four wells.
All infrastructure is already in place including pipelines, refinery complex and harbour facilities.
AEM noted that Union Pacific Trading, whom it is taking the state from, is in process of finalising its acquisition of rights in Wailawi.
Once this is completed, Union Pacific will then transfer its stake in Wailaw to AEM.