Greka Energy Corporation has closed the sale of its 75% exploration interest in the Jatiluhur Block, West Java to Kumoco Energy Ltd. The terms of the sale provide for a $4 million production payment to the Company and a retained 5% overriding royalty interest in the Block. Pertamina, the Indonesian state-owned oil company, consented to the sale.
The Block covers 1.275 million of unexplored acres on the Island of Java near a number of producing oil and gas fields. A portion of the Block identified as the Jonggol area consisting of 500,000 acres has two prospects and eleven leads.
The Company acquired the Indonesia prospect in the 1999 Saba acquisition. More recently in March 2002, the prospect was identified as a non-strategic asset under the Company's restructured business plan that focuses on its Integrated Operations in Santa Maria, California, and its long-term interests in China.