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Monday, June 16, 2014

Indonesia's Medco plans to purchase Chinook Energy unit in Tunisia, (TSE: CKE.TO)

Indonesia's PT Medco Energi Internasional Tbk (MedcoEnergi) has agreed to purchase a subsidiary of Toronto-listed Chinook Energy Inc with participating interests in eight oil and gas work areas in Tunisia. The deal is subject to approval from other partners in the blocks and the government of Tunisia and is valued at more than $114 million.MedcoEnergi, Indonesia's largest listed oil and gas firm, previously held stakes in Tunisia's Durra concession and Anguid exploration area, but sold them off in 2011."We have recently met with the government of Tunisia and they have shown their strong support in welcoming us back to Tunisia to pursue oil and gas exploration and production opportunities," MedcoEnergi CEO Lukman Mahfoedz said in a statement on Monday."Upon completion of the acquisition, MedcoEnergi anticipates adding (proven and probable) reserves and oil-and-gas production by (up to) 12.3 million barrels of oil equivalent and 2,800 barrels of oil equivalent per day (BOEPD), respectively," the statement said. Output from the assets is expected to reach approximately 16,000 BOEPD in 2018.

Chinook Energy Inc. (Chinook) is a Calgary-based public oil and natural gas exploration and development company with predominately natural gas and liquids assets in Western Canada and crude oil onshore and offshore in Tunisia, North Africa. Shares of CKE traded higher by 2.8% or $0.07/share to $2.57. In the past year, the shares have traded as low as $0.80 and as high as $2.59. On average, 344428 shares of CKE.TO exchange hands on a given day and today's volume is recorded at 119689.