KrisEnergy unit faces statutory demand; another subsidiary transfers offshore production interest

MAINBOARD-LISTED oil and gas company KrisEnergy, which is in the throes of debt restructuring, has been hit with a demand for US$2.84 million, the board disclosed on Friday.

The statutory demand from creditor Rubicon Vantage International against KrisEnergy's KrisEnergy (Gulf of Thailand) subsidiary, dated Feb 10, is related to an earlier claim filed by Rubicon against KrisEnergy over a bareboat charter from late 2014.

While Rubicon said that it may present a winding-up petition against the subsidiary if it is not paid within three weeks, KrisEnergy's board told the bourse that "the company intends to vigorously challenge Rubicon if the demand is not promptly withdrawn".

Separately, KrisEnergy said that wholly owned KrisEnergy (Vietnam 115) will transfer its entire working interest in an offshore production-sharing contract to an unnamed "major international oil and gas company", with the transfer to be done "for a nominal cash consideration".

"The board believes it is more prudent to allocate KrisEnergy's limited capital to funding near-term development, in particular the development of the Apsara oil field in Cambodia Block A," it said.

KrisEnergy has working interests in oil and gas fields in the Gulf of Thailand and onshore Bangladesh, and deals in nine blocks in Bangladesh, Cambodia, Indonesia, Thailand and Vietnam.

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The long-stop date for the farm-out agreement, which requires approval from various authorities, is June 30, 2020.

Trading in KrisEnergy shares has been suspended since August 2019.