Continental energy completes Bangkudulis acquisition

Canadian based oil explorer Continental Energy Corporation announced Thursday that it had closed the acquisition of 35,000 common shares of GAT Bangkudulis Petroleum Company Ltd. .

Continental said in a statement that the shares represented a 70 percent majority ownership of GATB and GATB's underlying technical assistance contract (TAC) for the development of the Bangkudulis Oil Field located in East Kalimantan.

Pursuant to the April 9, 2001 share purchase and transfer agreement, the Company owes the seller of the GATB shares, Dimensions West Energy, Inc. (DWE) of Vancouver, final consideration in the amount of US$ 185,000.

According to the agreement this amount is payable in cash or in the deemed cash equivalent in the form of the Company's common shares. The Company reached agreement with DWE to settle the entire outstanding amount for shares.

The Company is issuing 740,000 of its common shares to DWE at a deemed value of US$ 0.25 per share in full and final satisfaction of the agreement and closing of the GATB acquisition.

Continental is a small oil and gas exploration company focusing its efforts on discovering major reserves in Indonesia. The Company owns and operates a 60 percent interest in two exploration properties under Production Sharing Contracts covering some 3 million acres in Indonesia, the onshore Bengara-II Block and the offshore Yapen Block .(alex)