Mainboard-listed RH Petrogas, which is engaged mainly in the business of exploration, development and production of oil and gas resources, says it has agree to acquire the entire issued share capital of Lundin Salawati Basin BV (LSB) and Lundin Indonesia BV (LIB) from Lundin Petroleum BV (Lundin) for US$37.1 million ($49.9 million).

Both LSB and LIB are wholly-owned subsidiaries of Lundin. LSB hold a 25.936% participating interest in the Kepala Burung production sharing contract (Basin contract), while LIB holds a 14.5122% participating interest in the Salawati Kepala Burung production sharing contract (Island contract).

The Basin PSC and the Island PSC are two contiguous blocks located in the “Birds Head” area of West Papua, Indonesia, occupying a total area of around 2,000 sq km onshore and offshore. Both the PSCs currently expire in 2020.

Based on an independent preliminary assessment, the combined proved and probable (2P) oil reserves attributable to the acquired interests is 6.2 million barrels as of end-2009. Current net oil production attributable to the acquired interests is around 2,100 barrels per day.