Blue Dolphin Energy Company announced that the company has acquired a 70% working interest in a Technical Assistance Contract (NYSE:TAC) covering an offshore exploration field in Indonesia. The deal closed on June 1, 2010.
The Langsa offshore block comprises 77 square kilometers, and is located in the Sumatra Basin, Indonesia. The company said that 4 wells have been drilled to date in this block, with 1 well active and 3 idle at the current time.
Blue Dolphin Energy Company said that the one working well on the block is currently producing 620 barrels oil equivalent (NYSE:BOE) per day, with proved reserves of 1.925 million BOE.
Blue Dolphin Energy Company acquired the working interest from Blue Sky Langsa, Ltd., and will issue 24 million common shares of Blue Dolphin Energy Company stock in exchange for the working interest.
Blue Dolphin Energy Company said that if production from the well exceeds 1,500 BOE per day by the first quarter of 2012, then the company will issue an additional 12 million shares of Blue Dolphin Energy Company common stock to Blue Sky Langsa, Ltd.
Blue Dolphin Energy Company is an oil and gas company with assets in Texas and the Gulf of Mexico. The company also owns several pipelines in the shallow Gulf of Mexico area.
For more information on the company, go to blue-dolphin.com
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