Artist & Entertainment Group (ASX: AEM) has some potentially very interesting news on the horizon with the ASX granting the company a trading halt pending an announcement on the ongoing acquisition of the Wailawi Oil and Gas project in Indonesia.
Artist has previously announced that it was seeking to take up an interest in the project by taking an assignment of rights from Union Pacific Trading Pty Ltd
The Wailawi Project, located at Balikpapan in East Kalimantan, was discovered in 1975 and brought into production in 1979 producing gas from just four wells, with peak production reaching 18 million cubic feet of gas per day in 1985.
An additional two more wells were drilled in 1986 with production continuing until 1999.
Following the Asian financial crisis of the late 1990s, gas and oil prices went down to extremely low levels (e.g. gas was at US$3 per 1,000 cubic feet and oil was at US$20 per barrel).
This resulted in the field being placed on “care and maintenance”. In October 2005, Perusda entered a Production Service Agreement with BPMigas. This resulted in the field being put back into production.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Wednesday 11th July 2012.
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