Link: https://links.sgx.com/1.0.0/corporate-announcements/D5C1BRFNQG71X3V9/6a8b560165964a67eb7b0e2d5d86e90e0a6b0d64e9ab6a232d8bb9d6ebde444f

Summary:

• Geo Energy Resources Ltd will sell its entire stake in PT Sumber Bara Jaya (SBJ) and indirect control of PT Bumi Enggang Khatulistiwa (BEK) to PT Wahana Batubara Nusantara (WBN) and Mr. William for US$18 million.

• BEK owns a 4,570-hectare coal concession in East Kalimantan with 11.8 million tonnes of 2P coal reserves but has faced operational losses totaling US$0.6 million from 2022 to 2024.

• The payment will be made in three tranches: 1% on completion, 49% within 6 months, and 50% within 12 months—subject to regulatory approval and conditions being met.

• The deal helps Geo Energy exit a non-core, underperforming asset, generate cash for operations, and refocus on core growth drivers.

• The disposal will yield a modest gain of US$516,929 and has minimal financial impact (EPS increases from 2.62 to 2.63 US cents).

• Directors with nominal shares in SBJ and BEK (to comply with Indonesian law) are participating in the sale; no other directors or controlling shareholders have interests in the transaction.

• As none of the relative figures under SGX Rule 1006 exceed 5%, this is a non-disclosable transaction and does not require shareholder approval.