Geo Energy’s subsidiary has entered into a sale and purchase agreement to sell its shares in Sumber Bara Jaya (SBJ) for US$18 million ($23.03 million), according to a bourse filing on June 12.

Geo Energy holds 999 shares in SBJ, and two of its employees, Ng See Yong and Huang She Thong, each hold 1 minority share in the subsidiary. Geo Energy will also cease being a shareholder in Bumi Enggang Khatulistiwa (BEK), a subsidiary of SBJ.

Ng is the brother of Charles Antonny Melati, executive chairman and CEO of Geo Energy. He held a minority shareholding in SBJ for the purposes of compliance with Indonesian law. Huang is the chairman and CEO of Geo Energy’s Indonesian office, and also a brother of Melati.

Following the proposed disposal, SBJ and BEK will no longer be part of Geo Energy.

Geo Energy says that the rationale for the proposed disposal is that BEK is a non-core asset of the group which has low production volume due to operational and logistical challenges. It has been in a loss position with cumulative loss of US$0.6 million from 2022 to 2024.

Geo Energy’s earnings per share after the proposed disposal will rise to 2.63 US cents, from 2.62 US cents previously. Its net tangible asset per share will rise to $38.20.

Shares in Geo Energy closed 1 cent lower or 2.703% down at 36 cents on June 12.