LASMO TO BUY HOME'S INTERNATIONAL ASSETS

Jan. 15, 1990
Lasmo plc, London, plans to acquire Home Oil Co. Ltd.'s international assets from InterHome Energy Inc. of Canada for $23-30 million (Canadian). The interests, in 10 permit areas in six countries, cover proved and probable reserves of about 5 million bbl of oil and produce a net 1,100 b/d of oil. Lasmo, which operates in five of the six countries, believes 18 wildcat and appraisal wells will be drilled on the acreage during 1990-91.

Lasmo plc, London, plans to acquire Home Oil Co. Ltd.'s international assets from InterHome Energy Inc. of Canada for $23-30 million (Canadian).

The interests, in 10 permit areas in six countries, cover proved and probable reserves of about 5 million bbl of oil and produce a net 1,100 b/d of oil.

Lasmo, which operates in five of the six countries, believes 18 wildcat and appraisal wells will be drilled on the acreage during 1990-91.

Included in the acquisition is a 20% working interest in the Puerto Lopez oil discovery in Colombia's Llanos basin. The discovery well, Repsol Exploracion SA's 1 Valdivia, flowed 1,200 b/d of 23 gravity oil from pay at 5,3925,465 ft (OGJ, Nov. 27,1989, p. 34).

The assets also include a 1.95% interest in the Hudbay Oil (Malacca Strait) Ltd. operated Malacca Strait production sharing contract in Indonesia, a 21.5% interest in Home Oil operated Block PM-2 in Malaysia, upon which a well is drilling, and further exploration acreage in Egypt, Indonesia, Pakistan, and Syria totaling nearly 2 million net acres.

Hudbay is jointly owned by Lasmo and British Petroleum Co. PLC.

The $23 million price could be increased by a maximum of $7 million, payable during the next 2 years depending on the outcome of exploration programs in Colombia and Malaysia.

The acquisition is subject to a definitive agreement and government and third party approvals.

Lasmo, which produces 85,000 b/d of oil equivalent, will have operations in 17 countries after the acquisition.

InterHome, planning to concentrate on exploration in Canada, sold its U.S. oil and gas operations to Presidio Oil Co., Denver, late last year for $162 million (OGJ, Dec. 25, 1989, p. 32).

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