Indonesian-focused Matrix Oil is trying to keep the wolves at bay by holding meetings with all major creditors and has told the market that if it has said if it is able to raise all of the funds required to complete the requisite work at the Langsa fields and to resume oil production, then in-principle terms will be negotiated to enable debt repayment out of future oil production.

The company said that negotiations are continuing with "interested parties" for the raising of US$18-20 million of capital needed to carry out the three well remedial program for the Langsa oil fields.

Matrix also said it believes that it is close to finalising terms to ensure that the floating production storage and offloading (FPSO) tanker remains on station at the Langsa Technical Assistance Contract (TAC) area in the Strait of Malacca. This will also be conditional upon the raising of the finance to complete the work-program of the three wells as planned.

The company said there are currently approximately 140,000 barrels of oil (bbls) in the FPSO, with the L2 well producing approximately 450 barrels of oil per day (bopd). It is planned to undertake the fourth lifting of oil from the Langsa "L" field in middle of this month, bringing total production from the field since November 2002 to around 560,000 bbls.