Bow Energy Ltd owns a 50% Working Interest in the Langsa TAC, located in offshore North Sumatra, Indonesia.
Awarded by Pertamina on behalf of the Government of Indonesia in May 1997, the Contractor is permitted to reover its Capital and Operating Costs (“Sunk Costs”) from 65% of gross production, tax free. Sunk Cost pool is approximately $60 million. During the period of Sunk Cost recovery, the oil revenue allocation is 74%/26% to contractor/Pertamina. After cost recovery, the allocation is 27%/73% to contractor/Pertamina.
The Langsa TAC field, initially discovered by Mobil in 1980, is a 77 square km concession in 300 feet of water depth. Mobil drilled 5 wells and made two discoveries (L and H field). All but one well tested light oil with DST’s between 3500-5500 bopd from Malacca limestone at a depth of approximately 5500 feet. Langsa currently produces from 2 wells which are connected to an FPSO.