Continental and Bluline Enter Strategic Alliance
JAKARTA, Indonesia, July 6, 2015 /PRNewswire/ -- Continental Energy Corporation (OTCQB: CPPXF) (the "Company"), an emerging international energy developer, today announced that it has entered into a strategic alliance agreement with Indonesia based Bluline Group ("Bluline"). Bluline is a family owned group of companies that specialize in private equity investments in Food-Energy-Water ("FEW") related businesses and infrastructure projects throughout the Indonesian Archipelago.
The Bluline-Continental strategic alliance (the "Alliance") combines the financial resources and close local business relationships of Bluline with the technical expertise and energy operating experience of the Company and extends the Alliance's access to the public capital markets in North America. Under the Alliance, the Company shall act as the vehicle to implement the "E for Energy" segment of Bluline's FEW investment strategy.
The Alliance agreement defines the Republic of Indonesia as an area of mutual interest in which Bluline and the Company shall seek out and develop new energy related business opportunities of three types: 1) new green fields energy production and infrastructure ventures; 2) farm-ins to interests in existing projects, properties, and concessions; and 3) acquisitions of going-concern energy related businesses.
The Alliance shall target the conventional, alternative, and renewable energy sectors to tap Indonesia's abundant petroleum, coal, hydropower, and geothermal resources, all of which offer local and regional energy and electrical power generation opportunities particularly those situations where it is possible, with innovative development, to integrate upstream resource production completely through to downstream products. For example, the Alliance is already conducting due diligence on "stranded" gas fields (with no current pipeline access to markets) for alternative development utilizing the gas, at or near the wellhead, to 1) generate and sell electricity, 2) supply compressed natural gas to municipalities or industries in a readily transportable form by truck or barge, or 3) process gas into value added products using gas-to-liquids technologies.
Upon realization, any new Alliance ventures shall be vested in a Special Purpose Organization ("SPO") under definitive agreements made on a case by case basis for each new venture. The SPO may take the form of the Company directly, a subsidiary, or a joint venture which may include Bluline, the Company, and/or third parties.
In addition to its principle role of providing new venture identification, negotiations, and vision for the Alliance, Bluline shall take the lead Alliance role and leverage its financial resources to arrange private sector finance to complete transactions and fund and realize new Alliance ventures through any SPO.
In addition to its principle role as the corporate vehicle within which Alliance ventures are held and managed, the Company shall take the lead Alliance role and leverage its technical expertise and Indonesian experience to conduct technical due diligence and provide operating management through any SPO.
Bluline's, Mr. Baduraman Dorpi Parlindungan, said at the Alliance signing, "Bluline is committed to providing innovative commercial solutions to the chronic undersupply of reliable energy and electrical power that is sorely needed to fuel and keep pace with the rapidly expanding Indonesian economy. The large geographic extent of Indonesia, the wide distribution of the population, and domestic energy demand growth of 9% per year, all combine to require innovative energy providers who not only understand the local situation but can also think outside the box and provide customized energy developments. Our tie up with Continental firmly positions our Alliance and provides an ideal corporate platform through which we can implement our energy vision for Indonesia."
Mr. Richard L McAdoo, the Company's Chief Executive Officer stated, "We are delighted to become a proactive part of the Bluline Group. We share Bluline's special vision for the future of creative new energy developments in Indonesia, and look forward to working together with Bluline to realize them."
On behalf of the Company,
Robert V. Rudman, CPA, Chief Financial Officer
Forward Looking Statements - Any statements in this news release that are not historical or factual at the date of this release are forward looking statements. Forward looking statements in this release include the expectation that the Alliance is firmly positioned to implement its energy vision for Indonesia and will increase the Company's chances of realizing a participation in any new energy related ventures under the Alliance or whether such participation is profitable. There are many factors which may cause actual performance and results to be substantially different from any express or implied plans, estimates, forecasts, expectations, or objectives described in any forward looking statements. Readers should also refer to the risk disclosures outlined in the Company's regulatory disclosure documents filed with the Securities and Exchange Commission available at www.sec.gov. The Company assumes no obligation to update the information in this release. No securities regulatory authority has either approved or disapproved the contents of this news release.
SOURCE Continental Energy Corporation
Share this article