Singapore-listed GSS Energy stock rose as much as 0.4 cents today before weakness among small-caps caused it to close unchanged at 16.3 cents.
Heavy volume traded: 6.9 million shares.
The initial stock strength likely derived from a report in the Jakarta Post on Saturday that its JV would start drilling for oil in August.
This development is the biggest milestone since Nov 2016 when a 15-year contract was awarded to PT Sarana GSS Trembul, the JV, by Pertamina (see our recent story: GSS ENERGY: New oil field contract is "low-hanging fruit").
The striking thing about this venture -- in which GSS has an 89% economic interest -- is the cost of production being in the low teens, which means it is set to be highly profitable.
Furthermore, this is a KSO scheme whereby revenue from the guaranteed oil sale to Pertamina will first be used to pay for the cost of production.
The following are excerpts from the Jakarta Post report which came out on Saturday:
PT Sarana GSS Trembul will start drilling activities at two oil wells in Trembul in August.