document: KrisEnergy accepted the withdrawal request by local partner Palang Sophon Limited (PSL) in the G10/48 concession located in the Pattani Trough, Gulf of Thailand, on 31 July 2020. Upon approval from the Department of Mineral Fuels (DMF), PSL is obligated to pay for the necessary decommissioning costs for the field facilities within the concession, prior to transferring 11% participation interest to KrisEnergy. The reason for withdrawal is likely associated to the global uncertainties related to the coronavirus disease 2019 (COVID-19) outbreak and low oil prices.  Upon completion of the deal, KrisEnergy would be the sole effective shareholder for the concession. Previously PSL held the 11% interest following the acquisition of an indirect 14.67% interest in KrisEnergy G10 (Thailand) Ltd, which holds 75% interest in the concession, in February 2015.  As of August 2020, KrisEnergy is still offering a farm-in opportunity up to 44.5% participating interests in the concession. The concession contains five oil fields, including the Wassana field that was brought onstream in 2015. The field has been producing from a series of stacked Miocene fluvial sand at a range of 3,250 to 5,000 bo/d in 2019. Production from the field was suspended in June 2020 due to the drop in global oil prices.  Background Information  The original 18,780 sq km of G10/48 concession was originally awarded to Pearl Oil in December 2006. The concession is situated at the southern section of the Pattani Basin in water depth of 60 m, containing a producing field, Wassana (2009) and four oil discoveries Niramai (2009), Mayura (2010), Nong Yao Southwest 1 (2012) and Rayrai (2015). The Wassana field is one of the most matured assets for KrisEnergy in the Gulf of Thailand.   KrisEnergy acquired operatorship in the G10/48 concession from Mubadala (which had acquired Pearl Oil) in May 2014.   The last exploration activity in the concession is the drilling of Montha-1 in late-November 2018, targeting the Pattani Sequence III sandstone which comprises thinly stacked layers of alluvial sandstones. Located approximately 15 km west-northwest of the producing Wassana oil field, the well was plugged and abandoned dry.  The G10/48 concession is under a 20-year production period which commenced on 7 December 2015. The Wassana Production Area was granted on 9 February 2015 by the Thailand Department of Mineral Fuel (DMF). On 8 December 2015, DMF also approved an Exploration Reserved Area of approximately 1,525 sq km, comprising contiguous and non-contiguous to the Wassana production area, for up to five years.  On 30 January 2019, the Exploration Reserved Area received a reduction to 114.4 sq km, almost 60% cutback from the previous reservation area (283 sq km).
summary: Palang Sophon has withdrawn from G10/48 in the Pattani Trough, Gulf of Thailand, its 11% transferring to KrisEnergy