Indus Energy NL : divests interest in Prabu Energy Pty Ltd

STREET ADDRESS

Unit 17, Level 2

100 Railway Road Subiaco, Western Australia 6008

POSTAL ADDRESS

PO Box 8129

Subiaco East 6008

CONTACT DETAILS Tel: [phone] Fax: [phone] [e-mail] www.indusenergy.com.au BOARD & MANAGEMENT Mr John (Gus) Simpson

Non-Executive Chairman

Mr Anthony Milewski

Managing Director

Mr Marcus Gracey

Non-Executive Director

Mr Ken Bull

Chief Operating Officer

Mr Jonathan Whyte

Company Secretary

ABN

22 009 171 046

ASX CODE

IND

ASX Announcement INDUS DIVESTS INTEREST IN PRABUENERGY

9 April 2015

Indus Energy NL (Indus or Company) advises that it has today executed a share sale agreement to divest its 80% shareholding in Prabu Energy Pty Ltd (PrabuEnergy), the holder of the Ranau PSC in South Sumatra.
After recently completing a strategic review of the Ranau PSC and the Company's operations in Indonesia, the Company has agreed to divest its 80% interest in PrabuEnergy. This divestment decision was influenced by the challenging ongoing operating environment that persists in the oil & gas sector in Indonesia combined with the added challenges presented by the current low oil prices and the importance of being able to control expenditure.
Prior to entering into this transaction, the Company completed an extensive partnering process to attract and assess partnering and investment options for the project. This process was challenging as it coincided with a significant crash in commodity prices in the oil & gas sector and impacted associated investment appetite. Despite these circumstances, the Company recently engaged in discussions with PT Tosec World (Tosec), an Indonesian registered company and wholly owned subsidiary of Indonesian oil and gas company PT Tech Oil International, about acquiring the Indus project interest.
These discussions have resulted in the present transaction whereby Tosec have agreed to acquire the Company's 80% interest in PrabuEnergy. The Company's interest is held by its wholly owned subsidiary Merric Capital Pty Ltd (Merric) and Merric have today executed a Share Sale Agreement (SSA) that transfers its 80% interest in PrabuEnergy to Tosec. In consideration for this share transfer, the Company or its nominee shall retain an overriding royalty interest equal to ten percent (10%) of any and all oil and gas produced from the assets held by PrabuEnergy as at the date of the SSA. The Company and Tosec will execute a royalty agreement to this end as soon as practicable.
For Indus, this divestiture preserves the healthy cash position of the Company. For further information please our office on [phone].
Yours Sincerely

Anthony Milewski

Managing Director

www.indusenergy.com.au